Big four banks still face huge remediation bill, six years on from Royal Commission
The massive wave of post-Hayne remediation may be complete, but banks continue to grapple with new issues — costing valuable time and hundreds of millions of dollars.
The major banks are still paying out hundreds of millions of dollars a year in remediation for new and ongoing issues, more than six years on from the Hayne Royal Commission which exposed widespread problems across the industry.
Commonwealth Bank, for example, noted in its FY24 annual report that it “recognised an increase in the provision for Aligned Advice remediation issues and program costs of $7 million”.
CBA also paid $137 million in customer refunds for ongoing service fees, $63 million in other remediation matters and $29 million for program costs. At year end, CBA also held a provision of $40 million although that was well down on the $262 million at June 30, 2023.
“The Group … continues to engage with ASIC in relation to remediation programs,” CBA said.
