Financial institutions

Australian banks and financial institutions offer compensation to millions of customers after ASIC review

Millions of Australians who are customers of the country’s biggest banks and financial institutions have been offered billions of dollars in compensation – but there are concerns that many may not know they are eligible.

New data from the Australian Securities & Investments Commission (ASIC) reveals that $3.15 billion has been paid or offered as compensation to financial advice clients of six major banks, including more than $1.3 billion in six months from July to December 2021.

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The financial watchdog said compensation would be paid to customers who had “suffered loss or harm due to misconduct without service or non-compliant advice”.

The six banking and financial services institutions in question – AMP, ANZ, CBA, Macquarie, NAB and Westpac – have undertaken the review and remediation programs to compensate affected customers following two major ASIC reviews.

ASIC has begun reviews to examine the extent of institutions’ failure to provide ongoing advisory services to clients who paid fees to receive such services and the effectiveness with which institutions supervised their financial advisors to identify and dealing with “non-compliant advice”.

Millions of Australians could be eligible for thousands of dollars in compensation. File picture. Credit: Asadnz/Getty Images/iStockphoto

As of December 31 last year, AMP had paid or offered to pay $579,664,727 to 319,269 affected customers, ANZ had paid or offered $123,965,993 to 40,137 affected customers, and CBA had paid or offered $173,848,961. to 62,942 customers concerned.

During this time, Macquarie paid or offered to pay $4,628,000 to 1,105 affected customers, NAB paid or offered $1,127,275,888 to 754,519 affected customers and Westpac paid or offered $894,957,011 to 111,284 customers. concerned.

Remediator.com.au spokesman Joel Gibson said affected customers were being charged an annual fee for financial advice they never received or, in some cases, for financial advice they had never received. they had received but which were not compliant.

Analysts estimate that much of the proposed $3 billion has yet to be claimed by customers who never open their letters, have not yet filed a claim with the bank or cannot be contacted .

“Anyone who was a customer of these six banks between 2009 and probably through 2020 should check to see if they are owed any money,” Gibson said.

How to know if you are affected

All affected customers should be contacted directly by their bank.

However, if a customer believes they have been impacted and have not yet been notified, they can contact their bank’s customer remediation team.