Chief executive Ian Narev faced the media on Thursday to deliver the much-anticipated mea culpa, a full week after the release of a damning Senate report on the scandal.
"To all the customers who received poor advice, I apologise unreservedly," he told reporters in Sydney.
"We are truly sorry and we acknowledge the financial hardship that you suffered as a result of the poor advice."
The Senate report blasted CBA and the corporate regulator over their response, or lack thereof, to fraud and misconduct by some of the bank's financial planners.
That included cases in which customers lost large amounts of their life savings after being switched into high-risk investment products without their consent, and instances of financial planners forging client signatures to allow profit-producing product switches.
Internal review into CBA financial planning
In response, Mr Narev has announced a review covering a decade of activities in CBA's financial planning businesses, from 2003 to 2012.
Customers will be able to request a review of their case from the bank in the first instance, with the option of a further review from an independent panel appointed by the bank.
CBA has already paid about $52 million in compensation to 1100 people as a result of scandal, but some reports suggest the number affected might be as high as 12,000.
However, Mr Narev said any more money to be paid out would be "inconsequential" for shareholders in the $130 billion banking giant.
And investors seemed unconcerned by the developments - CBA shares were up 63 cents on Thursday to $81.55. But critics say the bank's latest review doesn't go far enough.
Calls for a Royal Commission
Former Labor senator Mark Bishop, who chaired the Senate inquiry and wants a royal commission into the matter, says the new compensation review does not differ much from existing arrangements.
"I welcome the apology of Mr Narev - that is a welcome development - but overall what we have on the table is marginal change at best," he told the ABC.
Law firm Maurice Blackburn, which has represented affected CBA customers, questioned the appointment process for the bank's independent panel and customer advocates.
"If it's the Commonwealth Bank that appoints them, then that's not independent," Maurice Blackburn partner John Berrill said.
But federal government figures backed the review, including Treasurer Joe Hockey, whose mother-in-law was among those hurt by the scandal.
"You've got to have a plan to ensure that people are given appropriate compensation. They're starting to do that but there's obviously a way to go," he said.
Prime Minister Tony Abbott played down the prospect of a royal commission into the financial planning industry.
"I don't want to overdo the reviews because in the end what people expect from government is appropriate action not endless study, particularly studies which don't necessarily lead to outcomes," he said.
What CBA financial planning customers can do
- Those given advice between 2003-2012 can request a review of their case.
- If unsatisfied, a second review by an independent panel can be carried out.
- If still unhappy, take the matter to the Financial Ombudsman.
- CBA has already paid $52 million to 1,100 customers affected by dodgy advice.
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