The Australian Securities and Investments Commission (ASIC) has put more conditions on the licences of Commonwealth Financial Planning and Financial Wisdom.

It comes after parent Commonwealth Bank revealed a compensation process had not been applied to all customers of the financial planning arms.

The dealer groups must now give customers assessments of the advice they received and offer further reviews.

They must offer up to $5000 to help people obtain their own financial or legal advice to help their claims, which can also be forwarded to the Financial Ombudsman Scheme (FOS).

They will waive any limitation periods or claim thresholds that apply to FOS hearings.

ASIC is also to appoint an external expert to oversee the subsidiaries’ compliance with the conditions. The expert will review whether steps to identify the advisers and clients covered by the compensation program have been reasonable.

Meanwhile, the bank has appointed former Australian Prudential Regulation Authority chairman Jeff Carmichael as an independent expert under its “open advice review” program.

Mr Carmichael is CEO of Promontory Financial Australasia. Other members of the company will assist the review, including former US comptroller of the currency Eugene Ludwig and former chairman of the US Securities and Exchange Commission Mary Schapiro.

The bank has appointed former High Court judge Ian Callinan to chair the independent review.