Westpac, NAB, AMP, ANZ, Macquarie and the Commonwealth bank examined their remediation programs as a result of two major reviews by ASIC.
As a result the six banks have already paid, or offered to pay, their customers a total of $3.6 billion as at June 30, 2022, after charging them “fees for no service misconduct or non-compliant advice”.
People who suffered a loss or damage as a result of these charges, made between January 1, 2009, and June 30 2015, could be eligible for compensation.
It comes after two major ASIC reviews, in 2016 and 2017, which examined the handling of “non-compliant advice” by financial advisors and investigated the extent to which customers were paying for services that the banks and institutions failed to provide.
From this, the financial watchdog was able to determine that there were “systemic failures”, and the six banks took part in “remediation programs” to ensure affected customers were compensated correctly.
NAB owed customers the largest amount, and have offered to reimburse over $1.2 billion to about 775,00 people.
The second highest amount was Westpac with just over $1 billion owing to 120,000 people. AMP will pay $600 million to 335,000 customers.
Commonwealth bank has paid or offered to pay $300 million to 145,000 customers; ANZ owed $262 million to 70,000 customers and Macquarie’s reimbursement total was about $5 million to 1000 customers.
ASIC said it continues to monitor the “ongoing implementation of the institutions’ customer review and remediation programs” following the report.
Individuals who were impacted by the “systemic failures”, should have been or will be contacted by their bank to discuss the compensations available.
However, if they feel that they may have been missed, they can contact their bank directly to discuss their eligibility.