The Commonwealth Bank of Australia (CBA) is set to carry out multiple reforms to its wealth management business in a bid to improve outcomes for its customers.
The decision is triggered by various revelations of misconduct at the bank by the banking royal commission.
The bank announced a series of new initiatives under which it will refund advice fees charged from deceased clients.
It will also remove specific fees charged on legacy wealth products from next year, a step which is expected to save A$25m ($17.8m) of customers’ money.
Additionally, CBA will rebate all grandfathered commissions to CFP customers from January next year. The move is expected to benefit nearly 50,000 customers.
As part of the new initiative, CFP customers will also have the opportunity to renew ongoing service arrangements every two years.
CBA Wealth Management COO Michael Venter said: “The changes announced today continue the process of reform underway in our wealth management businesses and form part of our response to specific issues identified this year through the Royal Commission.
“Charging unauthorised advice fees to deceased estates is unacceptable. A broader review of deceased estates is underway across our advice licensees.
“It will go back seven years to ensure that any instances where unauthorised fees have been charged are identified and refunded with interest.”
CBA said that in the last six years, it has invested more than A$580m to streamline its advice business. The bank has also reimbursed around A$270m to customers for poor services or for charging fees for no service.