CBA's pension arm to cut fees amid regulator calls
(Adds background on inquiry, details on fee review by
April 18 (Reuters) - Commonwealth Bank of Australia's (CBA)
pension arm said on Thursday it planned to cut annual
fees by about A$68 million ($48.81 million), after the country's
main financial regulators called for reduced fees.
This comes after a damaging year-long inquiry into the
financial sector that exposed widespread misconduct, including
customers being forced to pay fees for services that they had
The pension arm, Colonial First State, which CBA intents to
sell, expects the fee cuts to pull down its net profit after tax
by about A$45 million in the 2020 financial year.
The fee cuts will take effect from early June and benefit
more than 500,000 members, Colonial said.
Earlier this month, the Australian Prudential Regulation
Authority (APRA) and the Australian Securities and Investment
Commissions (ASIC) started a review https://www.apra.gov.au/sites/default/files/apra_asic_letter_oversight_of_fees_charged_to_members_superannuation_accounts.pdf
of superannuation fees and existing levels of governance.
The review is expected to be completed by the end of June.
($1 = 1.3931 Australian dollars)
(Reporting by Nikhil Kurian Nainan in BENGALURU; Editing by
Christopher Cushing and Subhranshu Sahu)
First Published: 2019-04-18 03:55:09
Updated 2019-04-18 04:44:13
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