• Contact
  • Feedback
Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now
  • News
  • Topics
    • All Topics
    • Briefs
    • Major Banks
    • Authorised deposit-taking institutions
    • Insurance, funds and super
    • Payments, mobile & wallets
    • Consumer lending
    • Mortgages
    • Business lending
    • Finance regulation
    • Debt capital markets
    • Ratings agencies
    • Equity capital markets
    • Professional services
    • Work & career
    • Foreign news
    • Other topics
  • Free Trial
  • Subscribe
  • About us
    • About Banking Day
    • Advertise
    • Feedback
    • Contact Banking Day
  • Search
  • Login
  • My account
    • Account settings
    • User Admin
    • Logout

Login or request a free trial

Fees-for-no-service compo blows out to $850 million

08 August 2018 5:01PM
The 'fees for no service' scandal that crippled AMP's public standing in April is poised to hack deeper into the reputations of other financial services providers after ASIC revealed that the compensation bill for the industry as whole had blown out by a further A$600 million.ASIC revealed the ballooning estimate of future payouts in a media release on Tuesday in which it also confirmed that the four major banks and AMP had already paid or offered customers $222 million in refunds for failing to provide advice after they levied fees.The regulator said the total compensation bill facing the sector over fees for no service breaches would exceed $850 million.AMP is expected to account for most of the additional $600 million of compensation after it advised ASIC that it expected to shell out $360 million in refunds and interest to affected customers.State Plus, the national financial planning arm of State Super, claims that an "oversight" led it to impose fees on more than 40,000 customers without providing financial advice.The company has already paid out $37 million in compensation and according to ASIC has provisioned another $53 million to cover future remediation.NAB's total bill to cover fees for no service payouts has climbed to almost $110 million after its NULIS subsidiary almost trebled its estimate of additional compensation.Commonwealth Bank's final bill for FFNS remediations will exceed $143 million after it confirmed it had provisioned for additional payments of around $25.2 million.Mystery surrounds the respective exposures of Westpac and ANZ to the illegal fee-skimming practice.ANZ has already paid out $50 million to affected customers and taken additional provisions to cover future compensation, but has not yet shared details of the provision with ASIC.Westpac, which has returned $6.8 million to customers it ripped off, also has not revealed an estimate of its future remediation bill.Bendigo and Yellow Brick Road are also facing compensation bills.Bendigo is expecting to shell out $2.5 million while Yellow Brick Road is expected to return $101, 477.

I'm a returning subscriber

*
Password reset *
Login

Request a free trial

  • Emailing you the news at 7am.
  • Covering core lending and funding issues, strategy, payments, regulation, risk management, IT, marketing and more.
  • Original news and summaries of major stories from other media – ditch your newspaper subscriptions.
  • Focused on banking and finance, saving you the time spent wading through newspapers and other services.
  • With reporting from former editors and senior writers from the AFR and The Australian.
  • Configured for your phone, laptop and PC.
Free trial Banking Day
Stay Ahead. Stay Informed.
Concise. Candid. Provocative.
Get the daily banking news that matters
Banking Day – Your trusted source for independent financial insights.
Subscribe Now

Finance regulation

  • States take up the cudgels on eConveyancing
  • Firstmac failed design and distribution rules
  • 'Minimal' bankruptcy reforms tabled by Dreyfus

Consumer lending

  • Latitude, Harvey Norman liable for interest free GO card con
  • Credit quality dogs Zip turnaround

Copyright © WorkDay Media 2003-2025.

Banking Day is a WorkDay Media publication

WorkDay Media Unit Trust

  • Privacy policy
  • Terms of access and use