• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Regulation

ASIC slams banks over fees for no service

ASIC slams banks over fees for no service
  • Pedro Gonçalves
  • @PeterHSG
  • 11 March 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Australia's corporate regulator has slammed the big four banks, Macquarie and AMP for "unreasonably delayed" and in some cases "legalistic" fees for no service reviews as customers are still waiting to be repaid after being ripped off in a A$1.5bn scandal.

The Australian Securities and Investments Commission said the big four banks, Macquarie and AMP were yet to complete further reviews of systemic failures that led to the fees for no service scandal - despite being advised to do so as early as mid-2015 - and were using overly legalistic tactics to delay the process.

Related articles

  • Oz regulator cites 21 firms for ‘failures’ in providing ongoing advice
  • AMP slapped with extra conditions by Australian regulator
  • Australia's big banks pay out $750m in fees-for-no-service bill
  • Commonwealth Bank of Australia responds to Oz regulator fine with A$105m payment

"These reviews have been unreasonably delayed. ASIC acknowledges that they are large scale reviews - they relate to systemic failures over long periods with reviews going back six to 10 years and cover 36 licensees from the six institutions that currently authorise more than 7,000 advisers However, we believe the institutions have failed to sufficiently prioritise and resource their reviews, particularly as ASIC advised them to commence the reviews in mid-2015 or early 2016," ASIC Commissioner Danielle Press said in a statement.

These reviews have been unreasonably delayed"

Some of the main reasons for delays by the institutions include poor record-keeping and systems within the institutions, which mean that in many cases they have been unable to access customer files for review, or failures by some institutions to implement customer-centric methodologies to identify and compensate customers. Also, some institutions have taken a "legalistic approach" to determination of the services they were required to provide.

Commonwealth Bank completed its further reviews but told the Australian Securities and Investments Commission in December it would look into whether three of its licensees had extracted fees-for-no-service.

The charging of fees for no service to customers, including dead people, emerged as one of the biggest scandals during the royal commission. In his final report, commissioner Kenneth Hayne said there was a "real question" as to whether some of the cases may have been criminal offences. The fees-for-no-service scandal was like "taking money for nothing", he added.

While CBA is reviewing its three licensees, Macquarie estimates it will complete its review by mid 2019 and AMP in the second half of 2021.

ANZ, NAB licensee JBWere and Westpac licensees Magnitude and Securitor have not given ASIC their proposed target dates for completion.

So far, AMP and the big four banks have set aside more than A$1bn for compensating customers affected by the fees-for-no-service scandal, but ASIC says the reviews are incomplete and in some cases will not be done until the second half of 2021.

 

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Regulation
  • Australia
  • Macquarie
  • ASIC
  • Australian Securities and Investments Commission
  • Commonwealth Bank
  • CBA
  • AMP
  • ANZ
  • NAB
  • Westpac

More on Regulation

FCA hands £3.4m back to unauthorised investment scheme victims

  • Regulation
  • 24 February 2021
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions

  • Regulation
  • 23 February 2021
Jersey regulator fines three firms for breaching money laundering rules

  • Regulation
  • 17 February 2021
FCA partners with Jersey regulator to probe new Woodford venture

  • Regulation
  • 17 February 2021
CISI launches anti-money laundering partnership with Qatari regulator

  • Regulation
  • 16 February 2021
Back to Top

Most read

HSBC Singapore CEO to leave for Saudi British Bank
HSBC Singapore CEO to leave for Saudi British Bank
Global UHNWI population to grow by 27% over the next five years: Knight Frank
Global UHNWI population to grow by 27% over the next five years: Knight Frank
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
J.P. Morgan Asset Management launches Global Income Sustainable Fund
J.P. Morgan Asset Management launches Global Income Sustainable Fund
Comment: Four key issues powering the renewable energy revolution
Comment: Four key issues powering the renewable energy revolution
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading