Advice misconduct aired at banks inquiry
Financial advisers have falsified documents, forged clients' signatures, impersonated customers and taken their money, the banking royal commission has heard.
After a week of damaging revelations that claimed the job of AMP's CEO, the royal commission will hear further damning evidence during the second week of its hearing focusing on financial advice.
AMP, which admitted lying to and misleading the corporate regulator about charging customers fees for advice they never received, is expected to also be grilled about cases of inappropriate advice.
But first ANZ will face further questioning on Monday about inappropriate advice given by some of its advisers.
The most explosive evidence this week could come from the case studies about misconduct that involved "improper" advice.
ANZ has acknowledged at least 56 events relating to improper conduct by financial advisers, senior counsel assisting the commission Rowena Orr QC noted in her opening address last week.
Ms Orr said it included customers' signatures being forged or falsified, customers being impersonated, the false witnessing of documents and cases of customer funds being transferred into a financial adviser's personal bank account.
The case of an ANZ financial adviser who falsified documents and misappropriated customer funds will be discussed during the hearing.
National Australia Bank will also get its turn at the royal commission over its financial advisers incorrectly witnessing binding beneficiary nomination forms for superannuation funds.
The incorrect witnessing potentially affected the validity of the nomination forms for about 2500 customers, Ms Orr said.
She said NAB initially discovered in late 2016 that a financial adviser had forged two customers' initials and asked another employee to falsely witness a beneficiary nomination form.
By October last year, the number of advisers identified as being involved in the incorrect witnessing had reached more than 350.
