Last week, NAB announced it would pay out more than $310 million after tax to customers as part of efforts to address advice-related issues.
It said the additional costs are due to refunds and compensation to customers impacted by issues in NAB’s wealth business, including adviser service fees and other wealth related issues.
Speaking at the parliamentary house committee inquiry into the major banks, Mr Thorburn acknowledged that “we’ve taken too long to find it and fix it”.
“Today, as I sit here, I feel we’ve resourced it and made the financial provision to be able to handle that as quickly as we can,” Mr Thorburn said.
“We’ve still got a lot of complexity to work through, but we are looking at $500 million that we’ve provided in total for this.”
Mr Thorburn also told the committee of the complexities around getting access to the necessary data and systems, given a number of the cases go back between five to 10 years.
“We want to get this as done as quickly as we can. I think we’ll have made a lot of progress by the end of this year. I think the amount will be about $130 million that we’ll have done by the end of the year,” he said.
“I think we want to complete the rest next year and as quickly as we can and the setting up of this customer remediation group that we’ve done since centrally.
“Both those things mean that we can push into it just as quick as we can.”
Committee member Matt Keogh asked NAB chief customer officer David Gall about the progress of its compensation payout to customers.
“That is still being worked through at the moment, so I would say that there would be a number with adviser service fees that haven’t yet been informed,” Mr Gall said.
“However, we expect to have a significant amount of compensation on those customers paid by Christmas as well.”
Mr Keogh then asked Mr Gall when all customers will be paid.
“We’re unable to answer that yet, but my expectation would be we’re going to be into 2019,” Mr Gall said.
In addition, Mr Keogh asked why there are still delays in NAB even having an idea of when they might be able to pay all affected customers.
“It’s a matter of actually working through them,” Mr Gall said.
And yet some planners have made a conscious business decision to make this firm there key business partner. I think that says a lot about the ethics and morals of the financial planner itself.
Sounds like Anne……. Tell me, who do you “choose” to be a business partner with? Your either an employee or employer linked to someone so which? Who is your master?
my master? all the product makers, the institutions, and dealer groups are my masters. I have no say in the matter, even though I have undertaken substantial study, with nearly 10 years worth of formal post graduate qualification plus at least 60 hours of CPD each year for the past 20 years.
best,
High Quals FP
shhhh quiet professionally jealous [u]incompetent[/u] people about, [i]be invisible [/i]
Identify and address the issue, you mean they didn’t know that they were setting ridiculous targets for advisers to reach, and when they weren’t hitting their KPIs they were being performance managed and bullied out of a job. STOP BLAMING THE LITTLE GUY not all adviser are rogues this is coming from the top when will see some jail time for the real offenders!!!!
Another Bank admits that they didn’t give two hoots about FOFA legislation and ASIC had done nothing to enforce the Banks to comply.
Yet no problem with their AFSL – carry on Banks as you wish as ASIC does nothing against you.
A very sad situation from the Big Banks, AMP, etc let run totally out of control by ASIC and thus we end up with the RC. [b]Nice work Banks, AMP and ASIC. NOT !!!! [/b][u][/u]
Too Right! All the banks have done is destroy the advice industry with their greedy, pathetic, conflict ridden banking culture – the quicker you get out the better. We are now left with higher costs, more useless compliance, education costs, ASIC Fees and a regulatory who wouldn’t know the reality of financial advice even if they fell over it.
You have summed it up well. The banks should never have been let loose on the wealth and insurance business.