About 8,500 customers of the ANZ bank will have their fees returned after an investigation found they didn’t get the annual review documentation they paid for.
The reimbursement of clients, those who used Prime Access, a fee-for-service package introduced in 2003, will cost the bank about $30 million.
ANZ reported the issue to ASIC (the Australian Securities and Investments Commission) and started a remediation program supported by external consultants PwC and law firm Clayton Utz.
Joyce Phillips, CEO of Global Wealth, apologised to clients.
“We will reimburse affected clients as soon as possible,” she said.
“We have also put in place a range of measures to ensure this issue does not happen again.
“This includes improved training, technology, audit and supervision as well as including the documented annual review as an essential component of balanced scorecards for our financial planners.”
Annual reviews have been conducted since 2013.
Financial planning scandals have also touched the Commonwealth, NAB and Macquarie banks, and a Senate committee has established an inquiry into financial advice.
Commonwealth Bank had to “unreservedly” apologise for its financial planning operations and NAB has got rid of more than 30 planners.
ASIC has sent in the private group KordaMentha Forensic to investigate two of Commonwealth Bank’s financial planning arms accused of poor advice and misconduct.