NAB fined $10k for misleading PDS
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.
AUTHOR
Malavika Santhebennur
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
