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Six of Australia's largest banking and financial institutions have now collectively paid or promised $1.05 billion in compensation for fees for no service (FFNS) conduct and non-compliant advice.
These types of behaviour drew the ire of the public when they were revealed by the Royal Commission, and just last week the country's corporate watchdog launched two new legal actions alleging the practice at StatePlus Super and two Westpac (ASX: WBC) subsidiaries.
The Australian Securities and Investments Commission (ASIC) has today released its latest update over remediation from AMP (ASX: AMP), ANZ (ASX: ANZ), Commonwealth Bank (ASX: CBA), Macquarie Group (ASX: MGQ), National Australia Bank (ASX: NAB) and Westpac.
After crossing the $1 billion mark, this means the institutions have committed an extra $295.9 million in compensation payments or offers in the second half of FY20.
The lion's share of that figure relates to FFNS at $882 million, affecting almost 937,000 customers with NAB accounting for more than 40 per cent.
Fees for No Service
| Institution | Compensation paid or offered | # of customers paid or offered compensation |
| AMP | $145,719,911 | 199,425 |
| ANZ | $66,653,885 | 26,461 |
| CBA | $167,131,529 | 54,826 |
| Macquarie | $3,970,000 | 983 |
| NAB | $368,075,052 | 626,863 |
| Westpac | $130,508,318 | 28,350 |
| Total | $882,058,695 | 936,908 |
Non-compliant advice
| Institution | Compensation paid | # of customers paid compensation |
| AMP | $28,647,008 | 2,043 |
| ANZ | $39,182,569 | 1,920 |
| CBA | $9,354,027 | 626 |
| NAB | $52,185,609 | 1,623 |
| Westpac | $34,197,446 | 1,647 |
| Total | $163,566,659 | 7,859 |
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Business News Australia
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