The close relationship and knowledge of the Australian Securities and Investments Commission (ASIC) held by former National Australia Bank (NAB) senior executive, Andrew Hagger was the reason he took the lead on negotiations with the regulator on fee for no service.
The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was told by NAB chief executive, Andrew Thorburn that he regarded Hagger as having a relationship with ASIC deputy chairman, Peter Kell, and talking with Kell.
He said this was the reason why Hagger had led the bank’s approach rather than the its legal/compliance department.
Under questioning from counsel assisting the Commission, Michael Hodge QC, Thorburn said he had regarded Hagger as having had “primary carriage” of the relationship with ASIC with respect to dealing with the fee for no service issue and that he had had confidence in Hagger.
He said that he believed that Hagger had been trying to deal with the regulator on a complex issue and was trying to do so in good faith in terms of a pre-Future of Financial Advice (FOFA) and post-FOFA approach.
Hagger announced his departure from the NAB in mid-September and Mr Kell is scheduled to depart the regulator early next month after announcing his decision to do so in September.