Powered by MOMENTUM MEDIA
moneymanagement logo
 
 

NAB remediation bill rises another $525 million

NAB/

18 April 2019
| By Mike |
image
image image
expand image

National Australia Bank (NAB) has upgraded the cost of financial planning client remediation.

The big banking group has announced to the Australian Securities Exchange (ASX) additional charges of $525 million after tax in connection with increased provisions for its remediation program.

It said it expected that this would reduce first half cash earnings by an estimated $325 million and earnings from discontinued operations by an estimated $200 million.

Confirming the situation, NAB chief executive, Philip Chronican said the company was putting things right where it had treated customers poorly and making sure they were compensated more quickly.

The bank said the key items giving rise to the increased costs were consumer credit insurance sales, non-compliant advice provided to wealth customers, adviser service fees charged by NAB Financial Planning salaried advisers, adviser fees charged by NAB Advise Partnership self-employed advisers and banking related matters including provisions for incorrectly charging fees on certain fee-exempt transactions.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Significant ethical issues there. If a relationship is in the process of breaking down then both parties are likely to b...

2 weeks 5 days ago

It's not licensees not putting them on, it's small businesses (that are licensed) that cannot afford to put them on. The...

3 weeks 5 days ago

So we are now underwriting criminal scams?...

6 months 3 weeks ago

After last month’s surprise hold, the Reserve Bank of Australia has announced its latest interest rate decision....

3 weeks ago

WT Financial’s Keith Cullen is eager for its Hubco initiative to see advice firms under its licence trade at multiples which are catching up to those UK and US financial ...

3 weeks 4 days ago

While the profession continues to see consolidation at the top, Adviser Ratings has compared the business models of Insignia and Entireti and how they are shaping the pro...

6 days 2 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
3