National Australia Bank (NAB) chief executive, Andrew Thorburn has admitted the big banking group faces a significant challenge in seeking to extend the NAB Financial Planning template for fee-for-no service remediation to aligned advisers working under the NAB license.
Thorburn admitted that the bank had less authority over the aligned advisers and therefore less ability to look at files and get the other information necessary to undertake the remediation process.
He said that NAB was not alone in facing this dilemma in circumstances where only 35 per cent of players were employed by banks.
Counsel assisting the Commission, Michael Hodge QC put it to Thorburn that if NAB could not access the necessary files and documentation then it was going to have trouble implementing the NAB Financial Planning remediation template.
Thorburn responded that if there were incidences of fees being applied for no service then the bank would just have to make the refunds.