NAB fined $57.5m in ‘charges for no service’ case


ASIC’s case centred on a “plan service payment” paid by MLC MasterKey Enterprise and Private Tremendous fund members. The payment was imposed to cowl the price of an adviser, linked to the member’s employer. These staff may flip off the payment after they modified jobs, however MLC didn’t inform members they may achieve this, ASIC mentioned within the case.

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NAB group govt for authorized and business companies, Sharon Cooke, mentioned in a press release on Friday: “Prospects ought to by no means have been charged for a service that was not acquired, and NULIS and MLCN ought to have made it clearer that clients may swap off the Plan Service Price.”

ASIC’s case towards NAB was the primary in an industry-wide scandal often known as ‘charges for no service’, which has led to huge compensation payments throughout the banking and monetary companies sector.

Ms Cooke mentioned NAB’s purchasers had been totally compensated, with a complete of $117 million paid to members by Could final yr.

An ASIC spokesman mentioned the regulator was nonetheless studying the judgement and declined to remark.

The case comes after NAB final week offered its wealth enterprise MLC Wealth to IOOF, the most recent in a wave of wealth administration asset gross sales following a run of scandals within the .

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