ANZ has identified areas of non-compliance with its lending policies and procedures for customers who borrowed from the bank to invest in Storm Financial.
In its submission to the Parliamentary Joint Committee on Corporations and Financial Services, ANZ said at no time did it have a formal relationship with Storm. However, it has identified around 160 of its customers who may have borrowed from ANZ to invest in the advisory firm.
“Following the review of the 160 customer files, we have determined that the lending decisions for a small number of customers did not comply with ANZ’s credit policies and we are undertaking further review to assess whether others could also be in that group,” the submission said.
ANZ said it is currently in the process of contacting those customers with whom the bank’s lending policies were not followed correctly.
“Where it is established that there has been non-compliance with ANZ policies and procedures in lending to these customers, we will ensure they are treated appropriately and fairly,” the submission said.
“Our approach will include assessing financial hardship on a case-by-case basis having regard to their individual circumstances and rectifying financial detriment that resulted directly from any action on ANZ’s part.”
In its submission, ANZ also said many of the current concerns about the financial planning industry would be addressed by the further professionalisation of the sector.
“This could be achieved by the establishment of a professional body that would set entry standards relating to qualifications; education and ongoing continuing education; register planners; manage claims of misconduct and report findings to ASIC; and oversee a Compensation Finds.”
