Advisors at a Sydney firm charged their deceased clients for services that were no longer being provided or were never provided, according to the Australian Broadcasting Corporation, ABC.
ABC revealed there were multiple instances of advisors charging financial advice fees to clients that were knowingly dead. In one example, an advisor provided services to a client in 2003 and when the client died in 2004, the client continued to be charged fees for services. According to ABC, an advisor at the firm reached out to a public trustee to notify someone of the situation but never received a response.
In another instance, a widow spoke up about the fees her deceased husband was being charged in 2013, but ABC said he continued to be charged for services.
In those two cases, it was unclear if the advisors themselves were fully aware of what was happening. In another case, ABC reported an advisor was aware that a client passed away and continued to bill him for services.
This news is part of a bigger scandal, according to Bloomberg. Bloomberg reported Monday that the Financial Services Royal Commission has been scrutinizing a series of firms for fee malpractice.