NAB fined $10k for misleading PDS

national-australia-bank/ASIC/compliance/PDS/peter-kell/retail-investors/australian-securities-and-investments-commission/

1 October 2014
| By Malavika |
image
image
expand image

National Australia Bank (NAB) has paid $10,200 in fines after the corporate regulator found the bank made misleading statements in its annuity term deposit product disclosure statement (PDS).

The PDS related to an annuity term deposit NAB offered from June 2013 to August 2014 to retail investors, including those who had or were heading towards retirement.

The Australian Securities and Investments Commission (ASIC) were worried the statements could have misinformed consumers by saying the fixed interest rate is calculated on the principal amount invested at the start of the investment.

ASIC issued a clarification saying it is not calculated on the investment but applies only to the balance of the principal, which gradually reduced throughout the investment period.

NAB also said the fixed interest rate on the annuity term deposit is referrable to the average annual fixed interest rate earned on the investment but ASIC clarified that this is not the case.

NAB issued a new PDS and promotional materials following ASIC's actions.

"ASIC will continue to take action where we believe entities are not accurately promoting the product they offer," deputy chairman Peter Kell said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

3 weeks 6 days ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 5 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS