Corporate Actions Notifications Review

We’ve completed a review of accounts that held shares on wrap platforms between 1 July 2014 and 26 July 2022. The purpose of the review was to identify whether corporate action notifications that were passed on by the platform administrator to the customer’s nominated Financial Adviser (and/or Authorised Representative) were communicated to customers, where required to do so.

Where we couldn’t find sufficient evidence that the customer was informed, where required, or it was impractical to look for evidence, we’re writing to these customers detailing the corporate actions they may have missed.

A customer has been included in this review if:

• Shares were held on a wrap platform under a custodial agreement where the platform operator was managing the shares for their benefit; and
• Their wrap account was open anytime between 1 July 2014 and 26 July 2022; and
• Corporate action notifications were handled by the platform administrator on their behalf and sent to their Financial Adviser and/or Authorised Representative with the intent that they would be communicated to the customer, where required; and
• Their Financial Adviser and/or Authorised Representative was part of a current or former subsidiary of the CBA Group and was listed as the nominated representative on their wrap account; and
• They didn’t participate in the corporate action or sell their rights or options; or
• Sufficient evidence couldn’t be found that they were informed of the corporate action, or it was impractical to look for evidence.

Some customers will be compensated where the terms offered in the corporate action may have resulted in a financial gain without materially increasing their market risk, had they taken certain actions. The payment calculation includes assumptions that are beneficial to the customer (also known as ‘customer beneficial assumptions’), such as the benefit of hindsight in relation to certain facts that may not have been known at the time, and is not a reflection of what would have happened had the notification been received, or what should be done in the future. 

• Corporate Actions Explained
• FAQs
• Australian Tax Implication of the payments