Commonwealth Bank of Australia’s [ASX:CBA] share price sunk lower this morning, after revealing further plans to improve outcomes for its wealth management customers and address issues raised by the Royal Commission.
At time of writing, the bank’s shares are trading at $69.04, down 16.48% from its 52-week high.
Why did CBA’s share price drop?
This morning the bank announced its plans to pay back any ‘unauthorised advice fees’ that it charged to deceased customers over the past seven years.
The bank will be reviewing any advice fees charged to deceased estates across all of its advice licensees. Any instances where unauthorised fees have been charged will be refunded with interest.
Currently 142,000 accounts have been assessed, of those accounts 12 deceased estates had been charged unauthorised advice fees between April and June 2018.
CBA Wealth Management Chief Operating Officer Michael Venter said:
‘The changes announced today continue the process of reform underway in our wealth management businesses and form part of our response to specific issues identified this year through the Royal Commission.
‘Charging unauthorised advice fees to deceased estates is unacceptable.’
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