Share

Share

ASIC proceedings in relation to ongoing fee arrangements

National Australia Bank today provided the following response to civil legal action taken by ASIC in the Federal Court in relation to alleged breaches concerning ongoing fee arrangements with clients of NAB Financial Planning (NAB FP).

Chief Legal & Commercial Counsel Sharon Cook said: “We take this action seriously and will now carefully assess the allegations. We will continue to work co-operatively and constructively with ASIC to deal with this issue.

“We have already acknowledged failures where customers have paid fees for services they didn’t receive and have paid $37.8 million to 27,500 NAB FP clients. Remediation began in December 2018 and is expected to be completed by June 2020.

“From February 2019 NAB FP began switching off fees for all clients with ongoing fee arrangements and determined to refund all ongoing fees paid by clients after 31 May 2018 until the client entered into a new advice arrangement. From 1 April 2019, NAB began transitioning clients to 12-month advice contracts and ceased entering into any new ongoing fee arrangements.

“NAB Financial Planning has made changes to systems and controls and will continue to improve so we can service our clients better.”

These changes include:

  • Improved guidance and training to employees in relation to ongoing service arrangements and fee disclosure statement requirements
  • Centralisation of the production of fee disclosure statements to enable enhanced monitoring and supervision of compliance with fee disclosure statements requirements

Announcements

SEE ALL TOPICS

Related Articles

  • Media Release

Response to FSU work hours survey

NAB Group Executive Susan Ferrier letter to employees following FSU work hours survey.

  • 07.12.2021
  • Time to read 1 min read
  • Full Year Results

NAB 2021 Full Year Results

NAB Group Chief Executive Officer Ross McEwan today released NAB’s 2021 Full Year Results and Annual Review.

  • 09.11.2021
  • Time to read 1 min read
  • Announcements

Port of Newcastle Hydrogen Hub

  • 08.11.2021
  • Time to read 1 min read

Quick links

National Australia Bank — NAB

Sometimes When The Unexpected Happens, We Realise What We Truly Value. Whether A Home, Farm, Business Or Your Passion, NAB Is Here To Support You.

Business Research and Insights

For more business news and analysis, visit NAB’s Business Research and Insights.