IMPORTANT UPDATE 06/11/2014
Commonwealth Bank of Australia (CBA), with Shine’s independent assistance, have now developed the Open Advice Review Program (OARP). The OARP seeks to review any advice given by financial planning businesses Commonwealth Financial Planning Limited (CFPL) and Financial Wisdom Limited (Financial Wisdom), and compensate any customer who received inappropriate advice. Due to this positive development, Shine’s investigations into this potential class action are on hold.
Click to read more about CBA’s Open Advice Review Program and Shine’s ongoing role in it.
Over the past two weeks, our team has continued its ongoing discussions with the Commonwealth Bank of Australia (CBA) on behalf of those affected by inappropriate financial advice.
Our team has continued to assist in the development of CBA’s Open Advice Review Program to ensure it provides a fair and independent method of reviewing customers’ claims. We anticipate that this program will be in place shortly.
We believe the program is a step in the right direction in terms of providing fair and effective outcomes for those affected and will continue to work with the bank until we reach an equitable resolution for our clients.
We will continue to keep you abreast of further developments via regular updates over the coming weeks.
Shine Investigates Commonwealth Bank Class Action
Following an investigation by Fairfax Media and Four Corners in relation to rogue financial adviser Rollo Sherriff, Shine Lawyers has commenced investigations into a potential class action against Commonwealth Bank of Australia (CBA) owned Financial Wisdom.
If an action is brought, Shine Lawyers would seek to recover up to $200 million on behalf of 3,000 Australian investors whose money was placed into CBA products through its wholly owned subsidiaries Financial Wisdom, Commonwealth Financial Planning, Colonial Life Insurance, ComInsure and Colonial First State Investments.
Following press coverage early last week, Shine was approached by a number of investors who had lost money through the financial planning arm of the bank due to "bad financial advice".
The majority of the investors, most of which are retirees and blue collar workers, had their life savings wiped out as a result of the advice they received.
Sherriff was the previous owner of Meridian Wealth, an authorised representative operating under an Australian Financial Services Licence held by Financial Wisdom.
CBA has since sold the subsidiary Meridian Wealth, which is now owned by Premium Wealth Management and headed by David Adiseshan, who is assisting Shine Lawyers with their investigation.
Shine’s investigations will focus on the advice provided to the investors, and the liability of CBA and its subsidiaries under their AFSL responsibilities. This liability could include breaches of fiduciary duty, breach of the duty to use reasonable care and skill in providing the advice, misleading or deceptive conduct or unconscionable conduct.
For more information or to find out how Shine can help investors who've suffered loss as a result of inappropriate financial advice, contact us.
Written by Shine Lawyers. Last modified: May 15, 2014.