ASIC orders Commonwealth Bank to stop charging financial planning fees
Australia’s corporate watchdog has ordered the Commonwealth Bank’s financial planning arm to immediately stop charging its customers ongoing service fees, hours before the Government releases the banking royal commission’s final report.
The Australian Securities and Investments Commission (ASIC) said Commonwealth Financial Planning (CFPL) had breached a court-enforceable undertaking.
It had also been ordered not to enter into any “new ongoing service arrangements” with customers.
The practical consequence of ASIC’s directive is that existing clients can continue to receive services from CFPL, but they cannot be charged for that work.
More to come.