On Apr. 13, ASIC fined Commonwealth Bank A$3mn re service fees.
- Enforceable undertaking applied to Commonwealth Financial Planning (CFPL) and BW Financial Advice (BWFA), wholly owned subsidiaries of Commonwealth Bank.
- CFPL and BWFA failed to provide, or find evidence for provision, annual reviews.
- This affected approximately 31,500 customers; CFPL in 2007-15; BWFA 2010-15.
- CFPL management knew in 2012 that customers may not have had annual review.
- There was a risk of broader fees for no service issue, but ASIC not told until 2014.
Enforcement
- CFPL and BWFA to pay community benefit of AU$3mn; CFPL compliance changes.
- Customer compensation of AU$88mn is nearing completion, as of Feb. 28, 2018.
CFPL
- Must give evidence that the changes are adequate to track contractual obligations.
- Identify and remediate customers who did not receive an annual review in 2018.
BWFA
- Ceased trading in 2016 and therefore CFPL is the focus of required improvements.
