Damning ASIC report on NAB misconduct released

Damning ASIC report on NAB misconduct released | Insurance Business

Damning ASIC report on NAB misconduct released

A confidential ASIC report detailing NAB’s suspected breaches of the Corporations Act and the ASIC Act dating back 15 years has been released by the Hayne royal commission.

The October 2017 report into NAB’s so-called fees-for-no-service scandal has been released after the royal commission heard NAB admit breaking corporate law 84 times.

NAB is refunding nearly $90 million to customers who were wrongly charged fees from 2012 for services they had not received.

The ASIC report, titled ASIC’s Outline of Suspected Offending, slammed NAB and its related entities, including superannuation firm MLC and superannuation trustee Nulis, for “serious and systemic” failings, as it detailed the bank’s fees-for-no-service breaches, ABC and The Sydney Morning Herald reported.

“The suspected contraventions... are serious and systemic,” ASIC said in the report. “As is evident from extracts from the breach reports submitted by NAB and the related NAB entities reproduced within this paper, those entities have, by their own admission, fallen below the standard expected of a responsible Australian financial services licensee. In short, they have failed to do all things necessary to ensure that the financial services provided by them are done so efficiently, honestly, and fairly.”

The report also noted that NAB’s failings “demand a significant regulatory response.”

“Moreover, the failures have occurred across a number of NAB group entities, meaning this was not an isolated problem, but a systemic failure of fundamental controls within the NAB group,” the report read.

In response to the ASIC report, NAB denied it has systemic issues and blamed ASIC for delaying the bank’s opt-in compensation plan for affected customers. The plan was later dropped by NAB, SMH reported.