ANZ under scrutiny
Tuesday, March 15th 2016, 8:50PM
ANZ’s OnePath in Australia will pay A$4.5m in compensation over breaches relating to its life, general insurance, super and funds management activities, the Australian regulator says.
ASIC said the bank had agreed to an independent review of OnePath’s compliance functions.
It said it sought the review following a significant number of breaches reported by the ANZ Group in relation to its life, general insurance, superannuation and funds management activities.
From early 2013 to mid-2015, around 1.3 million customers were affected by breaches, requiring refunds and compensation of around A$4.5m ($5m), rectifications and other remediation of approximately A$49 million.
Almost 1500 superannuation fund members had $28.7 million in contributions allocated to the incorrect super account of the member for a period up to 12 months.
ANZ has now returned these funds to the correct accounts and provided over A$400,000 compensation for lost earnings and/or incorrect fees.
OnePath failed to take further action in relation to 21,000 cheques it had sent to customers that were not banked within 15 months. These cheques included proceeds of insurance claims, superannuation benefits and refunds of premiums. Almost A$3 million was ultimately returned to customers with a further $11.6 million treated as unclaimed monies.
ASIC deputy chair Peter Kell said: “Appropriate compliance and systems to monitor compliance are essential for banks to adhere to their AFS obligations. This is important in maintaining customer trust and confidence in the sector. ASIC expects all AFS licensees to have systems in place to ensure they can satisfy their general AFS obligations.”
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