CommSec has voluntarily refunded $1.1 Million to clients, and paid another $700,000 in fines for contravening the Corporations Act.

The Australian Securities and Investments Commission (ASIC) said the brokerage arm of the Commonwealth Bank erred by failing to provide its clients the proper disclosure on types of trades.  This including cross trades - where the same broker handles the buy and sell side of a given transaction - and principal trading - when the brokerage buys the shares from the client.

The Commonwealth Bank maintains that it notified ASIC of the problems as early as 2013, and worked with regulators to make it right:  "We acknowledge and regret these process errors.  There were no losses to customers and the errors have now been rectified," read a statement from CommSec managing director Paul Rayson.  "We notified relevant customers and no complaints or issues have been raised," he added.

But the bank is issuing $1.1 Million in refunds to the 25,000 customers impacted, which comes out to about $44 per customer.