CBA officials have raised a cost estimate by $300 million. Image by AP PHOTO

financial and business service

CBA ups cost of advice payout by $300m

2020-07-30 09:39:53

Commonwealth Bank officials have increased their estimate of the cost of compensating customers who were erroneously charged fees for financial advice by $300 million, ahead of full-year results.

The bank will spend $834 million in total on program costs ($136 million) and refunding customers ($698 million) who were charged ongoing service fees for advice by Commonwealth Financial Planning Pathways, Count Financial and Financial Wisdom.

The companies collected the money between the 2009 and 2019 financial years.

Management had estimated $534 million in costs prior to the second half of this financial year.

The bank is due to present its full-year results on August 12.