The financial sector of Australia was recently subjected to a major inquiry thus four of its largest retail banks along with AMP. AX, a wealth manager, was mandated to pay the customers worth hundreds of millions as a compensation for the poor financial advices they have given in the last ten year. Everyone who wants to manage their finances is asking how to find a good financial adviser because scams and frauds are too rampant nowadays.
The Royal Commission conducted the hearings that lasted for a fortnight and they went into the details of the financial advice given. They found out the wrongdoings committed by the corporation and how they used their power in the financial industry to abuse customers. If they are to be found guilty, greater regulation will be conducted and they may face criminal charges as well.
According to the barrister in charge during the independent inquiry, Rowena Orr, over three thousand consumers received the compensation. The lenders also admitted that they are facing a number of charges such as poor advice and fraud. They are also charged because of the products they charged to customers but were never received by them.
Orr said that the financial advice sector has been facing a lot of criticism and investigation in the past few years. The commission has good reasons why they are doing so.
In the last 10 years or so, compensation has been paid by AMP as well as the four biggest banks in the country. The amount has even reached $297.5 million which they hope to cover the bad advice they gave which resulted to losses or no service. The corporate watchdog provided the exact figures.
The investigation started last month and it is expected to be completed within one year. The banks in question include National Australia Bank, Australia and New Zealand Banking Group, Westpac Banking Corp and Commonwealth Bank of Australia. In the following months, the commission expects consumers to be asking how to find a good financial adviser in order to avoid the same fiasco happening again.