The announcement by the Commonwealth Bank of Australia (CBA) that it will provide more compensation, for those who have lost money by following financial advice given by its planners, may have you asking if you’re entitled to make a claim. The good news is that anyone who received advice from 1 September 2003 to 1 July 2012 can ask for compensation, the bad news is that it’s up to the CBA whether you get it or not.
To receive compensation, you will have to establish that the advice you received was wrong for your risk profile. You can’t get compensation just because you lost money or your investments didn’t perform as well as you thought they would. And, if it’s deemed that you should receive compensation, the amount of money you get back may not be much. You will only receive the difference between what your investments returned and what the investments would have returned if you had been given advice for the correct risk profile.
Some 400,000 clients, past and present, are thought to be entitled to compensation and even if you have already received some form of resolution from the CBA, you can reapply if you think the payment you received was inadequate.
While the CBA is initially responsible for processing your claim, if you do not agree with its assessment, you can have it looked at by an independent review panel. The decision by the panel will be binding on the CBA, but not on the client, who can opt to take the dispute to the banking ombudsman or pursue it further through legal channels.
And for those lucky enough to have made money even though the advice given was incorrect? Well, they’re entitled to keep it.
If you think you may be entitled to compensation, visit Commbank.com.au for more details on how to start your review.