Count Financial hit with class action

CBA said it would “continue to support and manage customer remediation­ matters arising from past issues at Count Financial”.

Count Financial has been hit with class action proceedings in the Federal Court. Picture: AFP

Count Financial has been hit with class action proceedings in the Federal Court, with Commonwealth Bank on the line for as much as $300m in possible losses from the case against the business it once owned.

Law firm Piper Alderman has filed the proceedings, which relate to issues of fees for no service paid to Count Financial between August­ 2014 and last month, after Count Plus had taken ownership.

Piper Alderman alleges “that Count Financial contravened oblig­ations owed to their clients when taking commissions from product issuers and/or customers themselves”.

The law firm also claims Count Financial failed to ensure that its financial advisers did not contravene their legal obligations to their customers, ensure that adviser remunerat­ion was free from conflict, or act in their customers’ best interest when giving personal finan­cial advice, and to provide services where fees were charged.

Piper Alderman partners Simon Morris and Martin del Gallego­ said these claims had the potential to recover significant sums of money for a large number of affected Count Financial clients.

CBA said it would “continue to support and manage customer remediation­ matters arising from past issues at Count Financial” and had set aside a $300m indemnity­ to CountPlus to cover potential losses that may be incurred within four years of the sale.