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ASIC, Financial Planning

ANZ completes work over fees for no advice

ANZ has complied with a court enforceable undertaking (CEU) regarding the bank’s fees-for-no-advice conduct under its Prime Access service, according to the Australian Securities and Investments Commission (ASIC).

At the time of the undertaking in April 2018, the corporate regulator found ANZ had failed to provide documented annual reviews to more than 10,000 Prime Access customers during the period 2006 to 2013.

ASIC stated it had received an audited attestation on 31 May 2019 signed by ANZ private banking and advice managing director Michael Norfolk and an independent expert report from Ernst & Young.

In the audited attestation, the bank said the changes to its systems, controls and processes have been implemented in response to the fees-for-no-service conduct.

It has also provided documented annual reviews to Prime Access customers who were entitled to such reviews during the period January 2014 to March 2018.

The bank is also in the process of refunding more than 1400 financial advice customers where documented annual reviews were not provided and remediation is expected to be completed by mid-July. The total compensation is estimated at $46.85 million.

It also announced it will no longer offer the Prime Access service to new customers and will phase it out for current customers over the next 18 months.

“ASIC is satisfied with the audited attestation and the independent expert report. Compliance with the obligations under the CEU is now finalised, save for the payment of some remaining refunds due to clients, to be completed by mid-July 2019,” ASIC said.

“ANZ now has systems, controls and processes that seek to ensure documented annual reviews are being provided and that instances of non-delivery are detected and remediated.”

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