Thousands of customers can expect compensation in the fees-for-noservice scandal
Do you qualify for some of the $1 billion that will be paid out to clients of at least nine financial institutions? It is quite a windfall. The nine have been caught out charging for advice or services that they never provided and $1 billion is the amount being returned to customers.
The amount of compensation to superannuation fund members and investors has been climbing – at times leaping – in the past couple of months. It is a monumental stuff-up by the financial groups that has been hidden from public view until recently.
But it is now out in the open, thanks to the pressure from the royal commission into financial misconduct, although the regulator ASIC has been investigating planning groups and wealth businesses for charging fees and failing to provide ongoing advice since 2015.
ASIC realised it was onto something in 2016 when it estimated that there were 176,000 customers to be paid total fees of $154 million. It now says that the figure is at least $1 billion – and chances are it could be quite a bit more as there are many financial institutions scrambling to finalise figures.
The nine groups that ASIC has identified so far are AMP, ANZ, CBA, NAB, Westpac, Bendigo Financial Planning, StatePlus, Yellow Brick Road Wealth Management and NAB’s NULIS Nominees.
An indication of the extent of the issue is given in the 3500 documents that NAB provided the week before it was to appear before the royal commission. NAB’s overcharging (and cover-up) goes back 14 years to 2004.
The fees-for-no-service scandal has been largely centred on the retail super sector, with the exception of the financial planning division for public servants in NSW, now called StatePlus. ASIC has also named Police Financial Services, which trades as BankVic.
Retail fund fees have always been higher than those of industry funds, which do not use financial advisers as gatekeepers or pay commissions.
この記事は Money Magazine Australia の September 2018 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Money Magazine Australia の September 2018 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.
