The big four banks of Australia and wealth manager AMP have been fined a total of more than A$178m by the Australian Securities and Investments Commission (ASIC) for charging customers for advice services they never received.
In a report, the financial services regulator revealed that the four banks namely Australia and New Zealand Banking Group (ANZ), National Australia Bank (NAB), Commonwealth Bank of Australia (CBA), Westpac, as well as AMP have already repaid or agreed to repay A$23.7m. The regulator said that an additional A$154m in compensation would be required in the future.
The report forms part of a probe by the financial services regulator into the wealth management arms of the big banks.
CBA has been fined the largest amount. The lender expects to pay its A$105m compensation amount by mid-2017.
ANZ will have to repay A$49.7m, while NAB faces a compensation of A$16.9m. AMP will have to repay A$4.6m, and Westpac will have to repay A$1.2m.
ASIC deputy chair Peter Kell said: “Changes introduced through the FOFA reforms have shone a light on the advice fees that customers are paying and the services they should be receiving in return.
“Our report identifies the institutions' systemic failures in this area, which we are putting right by ensuring that customers are fairly compensated.”