Commonwealth Bank of Australia (CBA) notes the update provided today by the Australian Securities and Investments Commission (ASIC) on the Enforceable Undertaking (EU) regarding ongoing service fees charged by CBA’s salaried financial advice channel, Commonwealth Financial Planning (CFP).
The update confirms ASIC is satisfied with the attestation provided by CFP and the final independent expert report provided by EY and compliance with the obligations under the EU is now finalised, save for the payment of some remaining refunds due to clients which is to be done by 30 September 2019.
Under the EU, CFP is required to provide an attestation regarding the remediation of customers who did not receive an annual review in the period 1 July 2015 to 31 January 2018, as well as CFP’s systems, processes and controls for ongoing service delivery.
CFP will be moving to a new financial advice fee model where customers will pay for advice services when they are delivered. CFP has stopped adding new on-going service customers and stopped charging on-going service fees. The details of the new financial advice fee model are being worked through and further information will be communicated to customers when they are finalised.