The big four banks are not out of the woods yet. The royal commission are set on getting to the bottom of their bad financial planning advice.
ANZ [ASX:ANZ] are no exception. Their three main advice groups were recently questioned over a 2015 compliance audit.
ANZ shares have been on a downward spiral for months, and are not showing any signs of improvement.
Today their shares dropped by 2.14% by time of writing, continuing to stagger their overall share value.
As further hearings of the royal commission take place, more details have been released.
The audit viewed advice produced by ANZ between 2013 and 2015.
ANZ Financial advisers were rated as high risk due to not providing appropriate advice to their customers.
The audit discovered various cases which were deemed as inappropriate advice.
At least 60 instances of bad advice were found in 2008 alone.
12 years down the track, the number of bad advice given out at hit a total of 2,810 incidents.
ANZ’s chief risk officer Kylie Rixon said that the bank were detecting more cases of bad advice due to the state of the environment, allowing them to properly identify what went wrong.
However, despite owning up to most of their issues, ANZ further deny needing to make a quantum shift in investment as an attempt to lift their standards.
Abc.net reported that Ms Rixon stated:
‘I could think of measures like net promoter score, which is a measure of customer satisfaction … there may well be others, I’m sorry, I just haven’t turned my mind to that question before.’
The hearing continued further into the day, with witnesses on the stand. However, the Commission mainly focused their questioning on other banks and financial agencies such as AMP.
Where ANZ’s share price heads from here will likely depend on how severe any fresh discoveries of wrongdoing are. As the discussion turns to potential punishment for board members and the bank in general, we could expect to see further volatility.
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