Refunds for fees rip-off nears $850m
TOTAL compensation to be paid to customers charged for services they did not receive at five finance companies could top $850 million, the corporate watchdog says.
The Australian Securities and Investments Commission, led by chair James Shipton, yesterday said AMP, ANZ, National Australia Bank, Westpac and StatePlus had made provisions for remediation payments to customers who were charged fees but received no services in return.
That sum is on top of more than $480 million in compensation payments – or offers of compensation – made by other wealth managers and banks.
It follows an update from ASIC on payments to customers of AMP, ANZ, NAB, Westpac and the Commonwealth Bank as part of a separate scandal.
The companies have now paid or offered customers $222 million for failing to provide financial advice despite charging for it.
That is an increase of more than $6 million since the last update, in October last year.
ASIC also said yesterday that it was now overseeing more compensation payments in the fees-for-no-service scan- dal from other companies. These include Mark Bouris’s wealth management group, Yellow Brick Road, Bendigo Financial Planning, Police Financial Services – under the name BankVic – and State Super Financial Services, which trades as StatePlus.
Total compensation paid or offered by these companies has now reached $260 million.
The fees-for-no-service scandal has damaged AMP’s reputation and share price after it was exposed by the financial services royal commission.
AMP tried to conceal its behaviour in a doctored report designed to be given to ASIC.
AMP’s then CEO, Craig Meller, chair Catherine Brenner and other board members were all forced to leave when the scandal was uncovered. 12 Shields Street, Cairns