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.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.