SYDNEY, Feb 4 (Reuters) - Australia’s corporate watchdog has told Commonwealth Financial Planning Ltd, a unit of Commonwealth Bank of Australia, to stop charging or receiving ongoing service fees from its customers for failure to meet a Court Enforceable Undertaking.
The Australian Securities and Investment Commission said CFPL had also agreed not to enter into any new ongoing service arrangements with customers.
ASIC said CFPL had failed to meet requirements made in relation to the group’s fees for no service conduct.
The new requirements would continue until CFPL is able to satisfy ASIC that all of the outstanding issues have been remedied.
“ASIC has also been informed by CFPL that it is now in the process of transitioning its ongoing service model to one whereby customers are only charged fees after the relevant services have been provided,” the statement said. “ASIC will monitor CFPL’s transition to the new model.” (Reporting by Wayne Cole; Editing by Peter Cooney)