Financial Advice Remediation: Restoring Trust Through Fair Compensation
Understanding Remediation Obligations
Financial advice remediation programmes are required when past advice or product distribution has caused customer harm, whether through fees-for-no-service, poor advice, conflicts, or systemic failures. ASIC expects licensees to identify affected clients, quantify losses, compensate fairly, and address root causes to prevent recurrence.
Remediation sits at the intersection of advice conduct obligations (BID, RG 146), complaints (RG 271), breach reporting (RG 78), and broader governance frameworks. Firms must demonstrate that they have systems, data, and governance to detect issues, respond proactively, and remediate customers transparently.
Why Remediation Matters
For financial institutions, remediation is about more than compliance; it’s about trust, culture, and sustainability. Poorly handled programmes can cost billions, damage reputation, and undermine regulator confidence. Done well, remediation demonstrates accountability and reinforces customer focus.
Key implications include:
Board-level accountability for identifying and addressing misconduct impacts.
Systematic detection and scoping of affected customers.
Transparent calculation methods and timely compensation.
Independent assurance that remediation outcomes are accurate and fair.
Integration with complaints, breach reporting, and advice file reviews to prevent repeat issues.
Key Challenges Facing Firms
Obtaining and reconciling historical client data across legacy systems.
Defining scope and eligibility consistently across customer groups.
Designing fair, transparent calculation methodologies.
Managing large-scale customer engagement and vulnerable customers.
Coordinating with ASIC, AFCA, and other stakeholders to demonstrate good faith.
Embedding lessons learned into frameworks to strengthen future compliance.
How OCG Can Help
Oceanic Consulting Group (OCG) supports remediation programmes from design through execution, ensuring they are fair, defensible, and efficiently delivered.
Our services include:
Remediation framework design aligned to ASIC and AFCA expectations.
Data analytics and scoping to identify affected customers.
Calculation methodology design and validation.
Customer engagement & communication strategies.
Independent reviews & assurance to give boards and regulators confidence.
Programme management and governance uplift for large-scale remediation projects.
Feedback loops into advice, product governance, and complaints handling.
FAQs
What triggers an advice remediation programme?
Remediation may be required when advice is inappropriate, conflicts exist, or customers were charged for services they did not receive.
How long should remediation take?
ASIC expects remediation to be efficient, fair, and timely. Programmes often run in phases but should be designed to minimise delays.
Why is independent assurance important?
External review strengthens credibility, provides boards with confidence, and demonstrates good faith to regulators and customers.
Strengthen Your Remediation Programme
Work with OCG’s Advice & Compliance Specialists
Deliver remediation that is fast, fair, and defensible. Contact OCG to design frameworks, run data-driven programmes, and embed lessons that restore trust and protect your licence.
