NAB puts foreign currency trading option issue to bed

national australia bank australian prudential regulation authority risk management

14 December 2006
| By Darin Tyson-Chan |

National Australia Bank (NAB) has achieved closure on its regulatory impositions relating to the foreign exchange option trading issue after the Australian Prudential Regulation Authority (APRA) closed the remaining remedial actions associated with the event.

“The outcome is very pleasing, but we recognise that there is more work to be done as part of a continuous improvement program to ensure our risk management framework continues to strengthen. Everyone at the National Australia Bank is looking forward to continuing to develop a business that is well regarded by all our stakeholders and creates sustainable satisfactory returns for shareholders,” NAB group chief executive John Stewart said.

The announcement means NAB has the approval of the regulator to once again use the internal model for the calculation of the market risk component of risk-weighted assets from January 1, 2007, onwards.

In addition, NAB will no longer have to maintain a capital target of 10 per cent. The removal of this requirement is immediate.

“Together with the positive assurance from our independent auditors over internal controls that we received as part of our annual financial close, and as published in the annual financial report on December 1, 2006, this marks a major step forward for the organisation,” Stewart said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 day 16 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

5 days 22 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 3 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 5 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

4 days 20 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

3 days 23 hours ago