NAB Wealth's compensation scheme has now reached $1.7 million in monies paid out to customers of bad advice as the bank begins contacting others it believes may also have lost money.
Through the bank's 'Customer Response Initiative' (CRI) – which started in February – NAB has so far reimbursed 87 customers after resolving their claims for compensation. It is continuing to respond to new complaints within 45 days, as it had committed to, NAB said in a statement.
NAB said that this month, it has also begun writing to customers whom it believes may have lost money due to their receiving inappropriate advice dating back to 2009 – a plan which ifa first reported in September.
This will be done using a staged process as NAB continues its review of advice files. Each customer will have a dedicated associate who will be able to answer questions about the review process, NAB said.
Further, ASIC announced it will have continuing oversight of the initiative to ensure that it provides a fair, effective and transparent mechanism for customers to be properly compensated.
The CRI will also be subject to independent scrutiny by an external consultant, which will report its findings to ASIC, the regulator said in a statement.
NAB Wealth group executive Andrew Hagger said NAB is committed to helping restore customer trust and confidence in the financial planning industry.
"As part of this, we're taking a detailed look at our advice business, acknowledging that we may have made mistakes. Where we identify these, we'll try to make things right," said NAB Wealth group executive Andrew Hagger.
"In August, we said we would begin writing to customers starting in October who may have received inappropriate advice dating back to 2009. We have now started this process.
"It's important to our customers that we undertake this review in a thorough manner – and we will. Where customers have suffered loss due to inappropriate advice, we will compensate them for that loss."
Professor Dimity Kingsford will continue her role as an independent "customer advocate" in the implementation of the initiative, to ensure that the interests of customers remain at the centre of the review, NAB said.
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