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CBA increases fee for no service refund

Commonwealth Bank has updated its remediation provision relating to customers of its aligned financial advice businesses, Count Financial, Financial Wisdom and Commonwealth Financial Planning.

The bank has reviewed its estimates in relation to ongoing service fee remediation, having previously provisioned A$534 million. It will recognise a further $300 million in its upcoming financial report.

The total of $834 million represents $698 million of refunds and $138 million in program costs.

The bank said in a statement that, while its estimates may change, it believes it has adequately provisioned for these issues. The provision assumes an average refund of 37 per cent of ongoing service fees collected between 2008/09 and 2018/19.

The bank says it is “comprehensively addressing the full range of remediation issues” impacting customers of these businesses.

 

 

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