CBA takes $300 million remediation hit

CBA is “comprehensively addressing” the issues impacting customers of its aligned advice businesses – including Count Financial, Financial Wisdom, and Commonwealth Financial Planning-Pathways – and has provisioned $300 million for remediation costs.

“Significant resources have been committed to a comprehensive program of work, to ensure all issues are identified and remediated,” CBA said in a statement.

The total to-date aligned advice remediation provision recognised is $834 million, which includes $698 million in customer refunds (including $280 million of interest) and $136 million in program costs.

“While these additional provisions are estimates that may change, CBA believes it has adequately provided for these issues,” the bank said. “CBA will continue to monitor the adequacy of these provisions.”