CBA banned from charging service fees

Company News

by Anna Napoli

The corporate regulator has banned the Commonwealth Bank's financial planning arm from charging ongoing service fees.

ASIC has banned Commonwealth Financial Planning from earning any fees until it takes 'reasonable steps' to remediate victims.

The move comes after a report found the business had inadequate systems in place to protect customers from being ripped off.

CBA says it expects to have completed the stopping of charging ongoing service fees for the majority of customers by April 1 2019.

The big four bank says the ban's expected financial impact is a one-off pre-tax charge of $40 million.

Shares in CBA (ASX:CBA) closed 1.18 per cent higher to $24.87 yesterday.

 

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.