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CBA finds its advice was mostly appropriate

Nearly three-quarters of 8654 cases assessed under Commonwealth Bank’s Open Advice Review show appropriate advice was offered with no financial loss.

The review, conducted by Promontory Financial Group, found 542 cases of poor advice but no financial loss, while 1076 cases incurred a loss to bad advice. It has also identified 434 cases in which clients were charged incorrect fees but suffered no financial loss.

The bank received 22,797 expressions of interest for the compensation scheme, but only 10,128 registered to take part.

Of those, 8654 had an assessment outcome, with about $29 million paid in compensation.

The program reviewed advice by bank-owned dealer groups Commonwealth Financial Planning and Financial Wisdom between September 1 2003 and July 1 2012.

In its final report, Promontory notes 936 cases are to be finalised. The bank expects to achieve this by the end of the year.

Commonwealth’s EGM for the program, Leif Gamertsfelder, says the review is in its final stages.

“Reviews were completed and issued to customers early this year and the vast majority of cases – about 90% – have now been finalised,” he said. “We continue to make sure our dedicated team is available to assist customers or their independent customer advocate to answer any questions about the cases that are currently being finalised.”

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