16 Aug 2018
Commonwealth Bank of Australia (CBA.AX) charged some estates of dead people for superannuation advice and had inadequate compliance controls in its management of retirement funds, the country’s inquiry into financial sector misconduct heard.
Among Australia’s “Big Four” banks, CBA has taken the biggest reputational hit as the inquiry airs allegations of deception of regulators within the industry, as well as of bonuses for sales of inappropriate products and the charging of fees for no service.
Linda Elkins, executive general manager of CBA’s funds management unit Colonial First State, told the Royal Commission its superannuation trustee discovered in 2015 that some estates of dead people were being charged fees but the firm had failed to respond adequately.
“Was a control ever put in place for the fees to stop after three months (after death)?” asked Michael Hodge, a barrister assisting the inquiry, referring to the bank’s self-imposed target to manage the problem.
– Reporting by Paulina Duran, Reuters, 15 August 2018.
Link to Reuters.
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