Commonwealth Bank has agreed to pay $3 million after the corporate watchdog found two of the lender’s financial planning arms charged customers millions of dollars for advice they did not receive.
The Australian Securities and Investments Commission on Friday said Commonwealth Financial Planning and BW Financial Advice had been unable to prove they had advised about 31,500 customers between 2007 and 2015.
ASIC said CBA, which discovered the problem and reported it to ASIC in 2014, has almost finished paying $88.6 million in compensation to customers.
CBA chief executive Matt Comyn, who took charge of the bank on Monday, said the lender recognised its failures.
“This is unacceptable and we owe our customers an apology for letting them down,” Mr Comyn said.
The so-called “community benefit payment” of $3 million was part of an enforceable undertaking entered into by the CBA subsidiaries, which included using independent financial auditor EY to assess its processes and to provide public updates on what it is doing to remedy failings.
Rival lender ANZ last week also made a $3 million undertaking after ASIC said the bank failed to provide more than 10,000 of its customers with annual reviews of their investments.
ANZ’s final compensation figure is estimated to be $46.85 million.