Commonwealth Bank has been ordered to pay possibly more than $13.7 million to clients short-changed by a compensation scheme it set up.

The Australian Securities and Investments Commissions (ASIC) issued the order after independent expert KordaMentha Forensic found the bank failed to properly carry out the $52 million settlement process.

The bank set up the compensation scheme for clients who were victims of questionable financial advice from its financial planning arms Commonwealth Financial Planning (CFP) and Financial Wisdom.

“The report confirms the inconsistency and deficiencies of an original $52 million compensation scheme,” ASIC says. “The failings are being rectified through KordaMentha Forensic’s review.”

The KordaMentha Forensic report finds inconsistency in the treatment of clients of the two financial arms.

CFP clients were informed of the bank’s probe into the financial advice they were given and kept notified of the final outcome.

Most Financial Wisdom clients did not receive such notification, denying them the chance to provide feedback that may have supported their compensation claims.

For the few who were informed, the letters they received lacked the details given to CFP clients.

ASIC says the bank will offer up to $5000 each to about 2740 clients to have their advice assessments reviewed and to seek independent advice.

The bank must also inform another 1590 clients that a review indicated no financial advice was given to them, and if the clients dispute the findings they will receive $5000 in assistance to explore their options.

KordaMentha Forensic will release two more reports as it oversees the bank’s compliance with new ASIC conditions imposed on the financial planning arms.