Remediation continues to overshadow NAB’s MLC exit
Despite plenty of talk around private equity, National Australia Bank has signalled it is leaving its options open with respect to exiting MLC Wealth.
At the same time as announcing a third quarter trading update to the Australian Securities Exchange (ASX) revealing a 7% decline in cash earnings to $1.55 billion and an unaudited net profit of $1.5 billion, the big banking group said that structural separation of MLC Wealth had been substantially achieved in July.
However, it said that its focus with respect to separation continued to be on customer remediation.
“While a public markets exit remains under consideration, we are also actively exploring alternative transaction structures including a sale of the MLC Wealth business,” the ASX announcement said.
“NAB will take a disciplined approach to the exit of MLC Wealth and will execute a transaction at the appropriate time having regard to the interests of all stakeholders. Any transaction remains subject to market conditions, regulatory and other approvals,” it said.
“For NAB Group, remediation (including customer-related) programs and regulatory compliance investigations are continuing, with potential for additional charges although amounts and timing remain uncertain.”
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.
