Fees for no service payouts and offers approach $900m

24 August 2020, Written by Business News Australia

Fees for no service payouts and offers approach $900m

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

Author: Business News Australia





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