SKN | Commonwealth Bank Shares Rise Despite ASIC Legal Proceedings Over CommBiz Fees

Key Points

• Commonwealth Bank of Australia (ASX) acknowledged civil proceedings filed by ASIC over the disclosure of fees charged to CommBiz business banking customers.
• CBA has paid more than $26.4 million in remediation to approximately 93,000 affected customers, including around 40,000 small businesses.
• The bank accepts that its disclosures were inadequate but disputes aspects of ASIC’s allegations and intends to defend certain elements of the proceedings.

ASIC Takes Commonwealth Bank to Federal Court

Commonwealth Bank shares rose despite the announcement that the Australian Securities and Investments Commission (ASIC) had commenced civil proceedings against the lender in the Federal Court of Australia.

The proceedings concern the disclosure of a component of fees charged to customers using CommBiz, CBA’s online business banking platform. The charges applied to direct credit and direct debit transactions and included a fee of $0.25 plus GST.

ASIC alleges that the bank contravened provisions of the ASIC Act 2001 relating to misleading or deceptive conduct and breached obligations imposed on financial services licensees under the Corporations Act 2001.

According to CBA, the underlying fee was charged consistently over time. However, changes made to its terms and conditions to simplify the documentation did not accurately explain the method used to calculate and charge the fee.

The bank said it identified the issue itself, reported it to ASIC and cooperated with the regulator throughout its investigation. It has also introduced additional rectification measures intended to reduce the risk of similar incidents.

More Than $26 Million Paid in Customer Remediation

Commonwealth Bank has completed remediation for affected CommBiz customers who were charged the relevant fee component from December 2006.

As of October 20, 2026, the bank had paid more than $26.4 million to approximately 93,000 customers, including around 40,000 small businesses. The median payment was approximately $85, while the mean payment was approximately $442, with both figures including interest.

ASIC’s proceedings focus on the period between November 2020 and May 31, 2025. The regulator alleges that approximately 42,000 CommBiz customers were overcharged around $8.5 million during that period.

ASIC described the disputed charge as an additional fee that had not been disclosed for the corresponding movement of money into or out of a customer’s CommBiz account.

The regulator is seeking declarations, pecuniary penalties, adverse publicity orders, ancillary orders and costs. The final outcome will depend on the court proceedings.

CBA Disputes Aspects of the Allegations

Commonwealth Bank acknowledged that it failed to meet the standards expected in its dealings with CommBiz customers and apologised to those affected.

However, the bank does not accept the formulation of certain allegations made by ASIC. It said it intends to defend specific aspects of the claim while continuing to engage with the regulator in an effort to resolve the proceedings efficiently.

The matter was also reflected in the bank’s FY26 financial results, which included provision for the customer remediation payments. CBA had previously disclosed that several regulatory and legal matters involving group entities remained subject to review or investigation.

The proceedings add to the regulatory scrutiny facing Australia’s major banks. For investors, these matters can complicate assessments of potential legal liabilities, compliance costs and the longer-term financial implications of operational shortcomings.

Earnings Performance Remains an Additional Consideration

The regulatory proceedings arrive as investors assess Commonwealth Bank’s operating performance and valuation.

The bank’s FY27 first-quarter update reported no earnings growth compared with the second half of FY26, according to the information provided. This creates an additional consideration for shareholders evaluating the bank’s outlook alongside the legal and regulatory developments.

While the share-price increase indicates that the announcement did not prevent gains during the reported trading period, the longer-term implications will depend on the legal outcome, compliance improvements and the bank’s ability to sustain earnings growth.

Closing Insights

Commonwealth Bank’s ASIC proceedings highlight the importance of transparent fee disclosures and effective governance across large financial institutions. Although CBA has completed substantial customer remediation and acknowledged shortcomings in its disclosures, the legal process remains unresolved.

For investors, the distinction between completed remediation and potential regulatory penalties is important. The $26.4 million already paid addresses customer compensation, while ASIC’s separate claims for penalties and other orders remain subject to the court process.

The bank’s ability to manage regulatory exposure while maintaining earnings momentum will remain an important factor in assessing its investment profile. Its recent share-price performance should therefore be considered alongside the unresolved proceedings, operating results and broader valuation risks.

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