Money Banks to pay $200m in advice compo

12:36  19 may  2017
12:36  19 may  2017 Source:   MSN

Big banks had a roller coaster session today in the fallout from the budget's bank levy

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Australia's major banks will pay more than $ 200 million in refunds to customers who were charged fees for financial advice they did not receive, new figures show. AMP, ANZ, the Commonwealth Bank

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A composite image of signage of Australia's 'big four' banks: ANZ, Westpac, the Commonwealth Bank (CBA) and the National Australia Bank (NAB). © AAP Image/Joel Carrett A composite image of signage of Australia's 'big four' banks: ANZ, Westpac, the Commonwealth Bank (CBA) and the National Australia Bank (NAB). Australia's major banks will pay more than $200 million in refunds to customers who were charged fees for financial advice they did not receive, new figures show.

AMP, ANZ, the Commonwealth Bank, NAB and Westpac will pay $204 million plus interest to customers affected by the banks' failure to provide advice they had charged for.

The Australian Securities and Investments Commission on Friday released an update on its 2016 "fees for no service" compensation program report, which shows the five institutions have so far repaid $60.7 million to 45,000 customers affected.

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The organisations involved have also revised their estimated liabilities upwards.

"These institutions' total compensation estimates for these advice delivery failures now stand at more than $204 million, plus interest," ASIC said in a statement.

When ASIC first reported the advice failure investigation results in October, 2016, the banks had repaid $23.7 million to 27,000 customers.

ASIC found that affected customers had been charged fees for ongoing financial advice but had not received the advice because an adviser was not allocated to them or the adviser did not deliver an ongoing service.

Big banks' 'too big to fail' guarantee obsolete, ME Bank chief says .
The Federal Government's implicit backing of Australia's major banks as "too big to fail" is outdated and needs to be reviewed according to ME Bank chief executive Jamie McPhee. "The four major banks and Macquarie Bank weren't downgraded because of their too big to fail status so that's done nothing to level the playing field," Mr. McPhee told The World Today.

Source: http://au.pressfrom.com/news/money/-22234-banks-to-pay-200m-in-advice-compo/

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