The big four banks and AMP have forked out a total of $119.7 million in compensation as of June 30 to customers who suffered loss or detriment due to bad financial advice, the Australian Securities and Investments Commission (ASIC) has reported.
According to the corporate watchdog, NAB paid the most amount, at $32,432,131, to 1,032 customers of 81 advisers. This was followed by ANZ and Westpac, who each paid out more than $26 million in compensation, AMP, with $24,854,075, and CBA, with $9,269,005.
The compensation has been paid under review and remediation programs initiated as a result of an ASIC review, which focused on how AMP, ANZ, CBA, NAB, and Westpac identified and dealt with non-compliant advice by their advisers between Jan. 01, 2009 and June 30, 2015.
The figures do not include compensation amounts paid by CBA under its other large-scale remediation programs, the $14,061,373 NAB paid out for non-compliant advice that started prior to 2009, as well as those paid in relation to fees-for-no-service issues.
ASIC said it expects further compensation to be paid as the institutions continue their review and remediation programs for non-compliant advice.