Commonwealth Bank of Australia (CBA) reportedly transitioned over a million customers to new Smart Access Accounts without formal notification to either the Australian Securities and Investments Commission (ASIC) or the Australian Prudential Regulation Authority (APRA), according to a recent report in The Australian. This move, which involved closing the bank’s legacy Complete Access Account product, has resulted in some customers incurring fees for accessing cash through branches.
Freedom of Information requests revealed that neither ASIC nor APRA possess records of any communication from CBA regarding this significant account migration in 2024. This lack of formal notification raises questions about the bank’s adherence to regulatory transparency protocols. The shift from Complete Access Accounts to Smart Access Accounts, a product previously central to CBA’s transaction banking operations, impacted a substantial customer base. The change, announced in early December, effectively eliminated the option for these customers to utilize the former account type.
While a CBA spokesperson confirmed regular communication with regulators on various matters, the specific issue of the account transition appears to have been omitted from formal channels. ASIC acknowledged routine meetings with banks as part of their supervisory function but declined further comment on the matter. APRA also refrained from providing a statement regarding the report. The implications of this oversight remain to be seen, but the lack of prior notification to regulators regarding such a large-scale customer account transition could potentially lead to further scrutiny of CBA’s practices. This situation highlights the importance of clear communication and regulatory compliance within the financial sector, especially concerning changes that directly impact a significant number of customers.
