National Australia Bank Ltd. agreed to return A$36.5 million to superannuation members after it incorrectly charged them for advice they did not get and wrongly denied their insurance claims.
The Australian Securities and Investments Commission said it has imposed additional license conditions on the financial services license of NAB's superannuation trustee, NULIS Nominees (Australia) Ltd., after finding breaches in its internal procedures.
The breaches involved a breakdown in risk management and communication procedures following the transfer in 2012 and 2013 of all members in a number of products to MLC MasterKey Business Super and MLC MasterKey Personal Super. As a result, incorrect death and total and permanent disablement insurance tests were applied to MKBS and MKPS members between May 2013 and July 2015.
NAB has compensated affected members a total of A$1.8 million. In addition, NAB's wealth entities found that over 220,000 members were incorrectly charged planned service fees of about A$34.7 million between September 2012 and October 2016. NAB has promised to compensate these members for the incorrect charge.
As of Feb. 1, US$1 was equivalent to A$1.32.