NAB says its “journey of simplification” was responsible for its failure to disclose the relationship between advisers, licensees and the big four bank’s investment products to at least 150,000 customers.
An Australian Securities and Investments Commission (ASIC) investigation found recommendations were made on products owned by NAB Group-related firms, including MLC-branded products, without proper disclosure in Statements of Advice of the link between the adviser, the licensee and the bank.
The licensees investigated were:
- National Australia Bank Ltd
- Godfrey Pembroke Ltd
- Apogee Financial Planning Ltd
- GWM Adviser Services Ltd
- Meritum Financial Group Pty Ltd
- JBWere Ltd
NAB has since apologised for the omission and committed to remedial action. ASIC said clients who log in to view MLC investment products would see a disclosure and others would receive corrected disclosure letters.
In a statement, NAB executive general manager of wealth advice, Greg Miller, said a simplification of documentation was to blame.
The investigation was part of ASIC’s Wealth Management Project, which was designed to lift standards at the largest advice firms.
Miller’s full statement:
“For some years now, NAB has been on a journey of simplification, seeking to make things easier for our customers and to provide more investment options for them. Unfortunately we did not execute some of these changes well. While simplifying some of the documentation that we send customers, and while expanding our range of investments, we omitted disclosures that are important for our customers to receive.
“We apologise to our customers, and want to assure them that they did not impact the quality of advice they received from their adviser, and there is no impact on their investments or portfolios.
“Since identifying and notifying ASIC of these errors, we have worked to correct them, and to improve our processes to try to ensure they do not happen again.
“We are committed to transparency and have contacted, advised, and corrected information for customers via mail and the MLC website. Customers with further concerns can contact NAB’s dedicated hotline on 1800 035 687.”
