Federal Court Penalty – Plan Service Fees

Share

Share

National Australia Bank (NAB) acknowledges the $57.5 million penalty imposed today by the Federal Court in proceedings brought by the Australian Securities and Investments Commission (ASIC) against NULIS Nominees (Australia) Limited (NULIS) and MLC Nominees Pty Ltd (MLCN).

The Federal Court proceedings commenced in September 2018 related to the charging of Plan Service Fees to MLC MasterKey Business and Personal Super fund members between 2012 and 2018. In resolving the proceeding the Trustees admitted to certain conduct that was misleading or deceptive and false or misleading representations, as well as consequential breaches of the ASIC Act and the Corporations Act.

NAB Group Executive, Legal and Commercial Services, Sharon Cook, said: “With this legal matter resolved and important lessons learned, we are now moving forward and are focused on serving our customers well.

“Customers should never have been charged for a service that was not received, and NULIS and MLCN should have made it clearer that customers could switch off the Plan Service Fee.

“NULIS and MLCN stopped charging Plan Service Fees by November 2018. Members from whom the fee was deducted have been fully compensated, including being paid interest. A total of $117 million was paid to members and payments were made by May 2019,” Ms Cook said.

Announcements

SEE ALL TOPICS

Related Articles

  • Media Release

NAB partners with Plenti for secured auto/EVs and renewables lending

NAB has agreed to enter a strategic partnership with fintech lender Plenti Group Limited.

  • 28.11.2023
  • Time to read 1 min read
  • Media Release

NAB the first Aussie bank to launch digital wallet-enabled virtual corporate card

In an Australian banking first, NAB has launched a new, plastic-free, virtual corporate credit card to help businesses streamline, modernise and simplify their expenses.

  • 14.11.2023
  • Time to read 1 min read
  • Full Year Results

NAB announces 2023 Full Year Results

Releasing NAB’s 2023 Full Year Results, NAB CEO Ross McEwan said the bank and its customers were benefitting from the consistent execution of its strategy over several years.

  • 09.11.2023
  • Time to read 2 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.