Australia and New Zealand Banking Group (ANZ) has agreed to an independent review of its One Path subsidiaries after markets regulator Australian Securities and Investments Commission (ASIC) raised concerns about compliance at the OnePath division.
The breaches, which were noticed in the life, general insurance, superannuation and funds management arms of OnePath, occurred between early 2013 and mid-2015 and affected around 1.3 million customers.
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ANZ has to pay $4.5m in compensation and refunds to its customers over the breaches. The bank will also be subject to a further $49m worth of rectifications and other remediation.
The regulator said that these activities included $28.7m of superannuation contributions from 1422 OnePath superannuation members being allocated to the incorrect super account for the member for a period of up to 12 months.
OnePath also failed to take action in relation to 21,000 cheques sent to customers that were not banked within 15 months. The cheques included proceeds of insurance claims, superannuation benefits and refunds of premiums.
As a result of the errors, $2.9m was returned to customers and a further $11.6m was treated as unclaimed monies.
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By GlobalDataThe review of ANZ will be carried out by PricewaterhouseCoopers. It will review and assess the design and operational effectiveness of the OnePath compliance management framework, including policies and processes.
ASIC said the bank will also continue monitoring the rectification of any breaches that had yet to be finalized.
