New data from the financial watchdog shows that more than $3 billion has now been offered in compensation to financial advice customers of six big banks - including more than $1.3 billion in the last 6 months, from July to December 2021.
But not all customers have received their money, with some unable to be contacted and others yet to lodge a claim with the bank.
If you think you might be entitled to a refund* for financial advice “fees for no service” or non-compliant financial advice, contact Remediator and they can run you through a free eligibility check.^
Even if you’ve received an offer from your bank and you’d like a second opinion on whether it’s fair, Remediator might be able to help.
“Six of Australia's largest banking and financial services institutions have paid or offered a total of $3.15billion in compensation, as at 31 December 2021, to customers who suffered loss or detriment because of fees for no service misconduct or non-compliant advice.
“This includes almost $1.3bn paid or offered by the institutions between 1 July to 31 December 2021 (refer 21-203MR).
“AMP, ANZ, CBA, Macquarie, NAB and Westpac (the institutions) undertook the review and remediation programs to compensate affected customers [i] as a result of two major ASIC reviews (refer Background). ASIC commenced the reviews to look into:
the extent of failure by the institutions to deliver ongoing advice services to financial advice customers who were paying fees to receive those services. See Report 499 Financial advice: Fees for no service (REP 499), and
how effectively the institutions supervised their financial advisers to identify and deal with ‘non-compliant advice’ – i.e. personal advice provided to a retail client by an adviser who did not comply with the relevant conduct obligations in the Corporations Act, such as the obligations to give appropriate advice or to act in the best interests of the clients, at the time the advice was given. See Report 515 Financial advice: Review of how large institutions oversee their advisers (REP 515).
“The table below provides a breakdown of the compensation payments made or offered by the institution as at 31 December 2021.
Fees for no service misconduct
Compensation paid or offered
No. of customers paid or offered compensation
No. of customers paid compensation
* A refund means the amount that may be paid back to you by the relevant bank or insurance company or through the Australian Financial Complaints Authority (AFCA) process. If we are not able to get a refund for you, you will not pay us anything as we operate a 'No win no fee' model. If we do get a refund for you, we will be entitled to 20% of the refund amount plus GST as payment of our fees.
^ Remediator performs consumer remediation services on your behalf where you may be entitled to a refund for products that were improperly sold to you or where you have been charged fees and not been provided with services. We do not provide legal advice.