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Commonwealth Bank to refund fees charged to dead clients

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Commonwealth Bank is launching a remediation program for deceased estates after charging dead customers fees for unauthorised financial advice.

CBA Wealth Management CEO Michael Ventner says plans announced on Monday by the bank are a direct response to issues raised in the royal commission, which heard instances of CBA advisers charging dead clients fees in 2015.

The bank said it will forgo $45 million in annual income from January by rebating grandfathered financial planning commissions and cutting fees on legacy wealth products.

Independent Financial Advisors Association President Daniel Brammell tells Ross Greenwood it questions the culture within the organisations.

“What it has exposed in the royal commision that stunned everybody is the dirty underbelly that the banks are concealing

“Here they are able to spend hundreds of millions of dollars remediating things when it’s brought into the open light of day… but they didn’t have systems to be able to tell what was going on internally.”

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