Thanks Ken, via AFR:
At the same time National Australia Bank (NAB) was pushing back on the corporate regulator’s investigation into the fee-for-no-service scandal, several of the bank’s own internal reviews had identified major deficiencies in its record keeping and risk management systems, which are now the subject of a Federal Court lawsuit.
As chairman Philip Chronican and new chief executive Ross McEwan prepare to face shareholders in Sydney on Wednesday morning at the bank’s annual meeting, the bombshell case filed on Tuesday by the Australian Securities and Investments Commission shows that investigations inside NAB had uncovered serious problems in the first half of 2016.
For the next two years, NAB would argue with the regulator about definitions and models for compensating customers, to try to limit payouts, as detailed by the Hayne royal commission.
And Banking Day:
National Australia Bank has not yet indicated whether it will defend all or part of a civil action brought against it in the Federal Court yesterday by ASIC over the fee for no service scandal.
The regulator alleges in its statement of claim that the bank engaged in unconscionable conduct and committed thousands of breaches of corporations laws by improperly charging ongoing fees to financial advice customers.
Details of the scandal were exposed last year when ASIC and the bank furnished evidence on fee for no service issues to the Hayne Royal Commission.
The royal commission heard evidence that NAB and other banks admitted that they had improperly levied ongoing service fees on financial advice customers who had died.
Given that penalties for each of the alleged contraventions alleged by ASIC range between A$250,000 and $2.1 million, NAB could be facing a bill of more than $3 billion if it decides not to contest the claim.
Ken Henry clawbacks anyone?