NAB Wealth confirms letters on inappropriate advice
National Australia Bank's wealth division NAB Wealth today announced that it is proactively writing to customers as part of its ongoing customer response Initiative in the wake of concerns around the provision of inappropriate advice dating back to 2009.
The big banking group made the announcement at the same time as revealing that it had made $1.7 million in payments to 87 customers since February.
NAB Wealth Group Executive, Andrew Hagger, said the business was writing to customers where it believed there might be financial loss caused by inappropriate advice.
"We're committed to helping restore customer trust and confidence in the financial planning industry. As part of this, we're taking a detailed look at our advice business, acknowledging that we may have made mistakes. Where we identify these, we'll try to make things right," he said.
Hagger pointed out that the bank had, in August, said it would begin writing to customers starting in October.
"It's important for our customers that we undertake this review in a thorough manner — and we will. Where customers have suffered loss due to inappropriate advice, we will compensate them for that loss," he said.
Hagger said NAB would be writing to customers through a staged process as it continued its review of advice files with customer having a dedicated associate who would be able to answer questions about the review process.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
