National Australia Bank Ltd. and Commonwealth Bank of Australia both denied allegations that they engaged in criminal conduct in their dealings with their respective superannuation funds customers, The Sydney Morning Herald reported.
During hearings at the country's royal commission, NAB argued that it did not owe its superannuation customers an "overarching obligation" to act in their interests. The bank's super trustee NULIS claimed there was no evidence it intended to violate the law when it failed to report a breach within the required 10 days to the country's corporate regulator.
Meanwhile, CBA denied a number of alleged legal breaches related to its superannuation business Colonial First State, including allegations it breached the Corporations Act for tardy breach reporting. It also denied it charged financial advice fees to dead people.
The two banks were responding to initial findings by the royal commission that the banks engaged in "ethically unsound" practices and possibly criminal offenses. These include charging dead customers fees, fees for no service and tardy breach reporting.
The commission also criticized funds managed by IOOF Holdings Ltd. and AMP Ltd. In response, IOOF rejected the preliminary findings that it had not acted in the best interest of its members when it compensated some members of its Questor Cash Management Trust with their own money. AMP also denied allegations it had not acted in the best interest of members.
Insurer Suncorp Group Ltd. rejected six findings of misconduct against it. Four of these allegations were linked to the use of members' tax credit to pay part of Suncorp for services, while two were related to its transfer of members to its super scheme, My Super. Australia & New Zealand Banking Group Ltd. denied it breached the Corporations Act in selling a super product through its branches.