In a statement on Thursday, ASIC said it had commenced court proceedings against NULIS Nominees and MLC Nominees.
“ASIC alleges that NULIS and MLC Nominees (as the current and former superannuation trustee of NAB) misled members of MLC MasterKey Super products,” the statement said.
The corporate regulator is alleging that both entities deducted $33 million in Plan Service Fees from 220,000 MLC superannuation members who did not have an adviser.
Furthermore, NAB deducted around $67 million Plan Service Fees from 300,000 members of MLC MasterKey Personal Super where members did not need services and advisers did not provide services.
“ASIC seeks from the Federal Court declarations of contravention and a civil penalty,” the statement said.
The corporate regulator alleges that NULIS and MLC Nominees:
- contravened s912A(1)(a) of the Corporations Act 2001 in not providing services “efficiently, honestly and fairly” regarding the $33 million deducted in Plan Service Fees;
- “made false or misleading representations” to members with no advisers, contravening ss 12DB, 12DA of the ASIC Act and s1041H of the Corporations Act by representing to members that they were entitled to deduct the Plan Service Fee and the member (with no adviser) were obliged to pay it;
- contravened s912A(1)(a) of the Corporations Act in deducting $67.1 million from members where advisers did not provide services and members did not receive services;
- “made false or misleading representations,” contravening s12DB and s12DA of the ASIC Act by failing to let members in MLC Masterkey Personal Super know they could turn off the Plan Service Fee; and
- “contravened s912A(1)(c) of the Corporations Act by failing to comply with financial services laws”.
This includes issuing “defective disclosure statements”; “failing to exercise the degree of skill, care and diligence as a prudent trustee would exercise”; and “failing to act in the best interests of members”.
Give them the same treatment as ASIC did to Dover….no Dover clients lost any money but this has cost clients how many millions…good for the goose is good for the gander…
good riddance. dover and it’s advisers were very very very very (very) low quality, they are all going to go bankrupt (on their way) and or homeless or homeless and bankrupt
Dover had an above average number of degree qualified advisers, and nearly 100 accountants.
Advisers included Oxford law graduates and PhDs.
Not sure where you are getting your facts from but suspect you are another ASIC plant paid per published comment.
Sounds like “intra Fund advice” that all industry funds provide and hide advice fees and call them admin fees! would be nice if everyone played by the same rules. We know the real reason they left the industry funds alone they want money for infrastructure which should always be paid by the government.
Just another calculated risk. Rip people off, if you get caught, pay it back and apologise. Meanwhile, keep ripping people off in other areas for as long as you can get away with it. Net gain.
as long as you are big enough to pay the fine, fine, otherwise, good luck. you will be run out of town
ASIC, does not need to take NAB to court. ASIC needs to revoke NAB’s license. Anything less is a “soap opera”.
The key in this is what ASIC is seeking. You figure it out.
This is getting boring. Of more concern to me, on behalf of my clients is how nulis will prioritise members over shareholders moving forward
Good
Hopefully ASIC will move onto all the other entities that have been doing the same.
Id also like to get back the ongoing trailing commissions paid to my mobile phone plan reseller, my internet plan reseller, my mortgage broker and my car finance broker, as they aslo provided no ongoing service.
actually, the mortgage broker gets a 9/10 satisfaction rating. higher than any other profession on record!!
It’s a shame it took a Royal Commission to uncover this. It highlights how woefully inept the regulator is. The Royal Commission could go for another year and still not uncover all the screw ups at the banks and wealth management companies.
IOOF will be next.
on what basis?
So it takes a Royal Commission for ASIC to act. No doubt a small affordable fine. ASIC is a joke