Fees for no service payouts and offers approach $900m

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


Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Advertisement

Related Stories

NBA star and Rüfüs Du Sol back QR code menu startup Mr Yum in $11m round

NBA star and Rüfüs Du Sol back QR code menu startup Mr Yum in $11m round

Before the concept of social distancing entered the lexicon and p...

As Digital Wine Ventures sips success, CEO can't see growth slowing any time soon

As Digital Wine Ventures sips success, CEO can't see growth slowing any time soon

In October 2018, a Chinese market-oriented wine merchant then kno...

Archistar raises $6m to take intelligent property planning tech global

Archistar raises $6m to take intelligent property planning tech global

"We believe the partnership with the Victoria State governme...

Afterpay exploring potential US listing as sales triple in North America

Afterpay exploring potential US listing as sales triple in North America

Afterpay's (ASX: APT) explosive growth in the US market has e...