NAB/MLC relied on adviser attestations on fees
National Australia Bank and MLC were prepared to rely on “adviser attestations” that they had provided services to clients to enable the banking group to retain fees in the face of “fee for no service” concerns.
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry heard from NAB’s chief customer officer, Michael Hagger that faced with “fee for no service” concerns from the Australian Securities and Investments Commission (ASIC) the banking group had gone looking for physical evidence of interactions between advisers and clients.
Under questioning from counsel assisting the Royal Commission, Michael Hodge QC, Hagger acknowledged that in order to retain fees the banking group had looked to see whether there was physical evidence of interaction between advisers and clients.
He also acknowledged that the banking group was prepared to seek adviser attestations as to whether or not the advisers had provided services to particular clients.
“And if they [the advisers] attested that they had provided the services, then you wouldn’t see a reason to repay the fees?” Hodge asked.
Hagger agreed that this was the case, but claimed that the adviser attestations would be subject to assurance.
However, Hagger also agreed with Hodge that in the absence of adviser attestations, the bank would be asking customers to attest that they had actually not received services.
Hagger said the NAB/MLC position was that if there was evidence that a service had not been provided, then the bank would refund the fees.
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.