CBA defends 'incorrect' personal advice claims
BY JAMIE WILLIAMSON | MONDAY, 16 JAN 2017 12:36PM
http://www.financialstandard.com.au/news/cba-defends-incorrect-personal-advice-claims-91376801
The Commonwealth Bank has responded to reports by Fairfax claiming a CBA bank teller had provided personal advice to a now-deceased customer.
Last week Fairfax revealed CBA is working through a $68,000 compensation claim as part of its Open Advice Review program, with the key complaint being that a customer, Raymond Kataryna, was given personal advice by a bank teller which resulted in him losing tens of thousands of dollars.
In a statement addressing the media reports, CBA executive general manager advice review program, Leif Gamertsfelder said: "Any suggestion in this case that a frontline branch staff member provided personal advice or provided a product to meet a sales target is completely incorrect."
"There is a record of the interaction between the branch staff member and the customer. This confirms that Kataryna directed his funds to be placed into an at call account so that he could complete the construction of his new home under contracts he had already entered into.
In this case, there is no record of personal advice because personal advice was not provided," he said.
Gamertsfelder also cited a review of the case conducted by the Financial Ombudsman Service in 2012 which found in favour of the bank.
Despite this, Gamertsfelder did concede that the Open Advice Review program had identified that Kataryna had received some unsuitable advice but was unrelated to his dispute regarding the bank teller.
"Kataryna received his assessment outcome letter shortly before he passed away, which found that some of the personal advice he received from a financial planner was not appropriate," Gamertsfelder confirmed.
In the statement Gamertsfelder said the bank was deeply saddened to learn of Kataryna's passing last year and is committed to working with Kataryna's family and their legal representatives toward a resolution.
Gamertsfelder said that more than 80% of customers registered for the Open Advice Review program have been assured that the advice they received was suitable and the bank is working with those for whom the provision of poor advice resulting in financial loss has been identified