Melbourne, Australia : National Australia Bank (NAB) has scheduled contact programs with customers who may have received non-compliant advice since 2009 and had been waiting on the sidelines for the same. Taking it up as a large scale financial advice Remediation program, coming into effect from today, the affected clients would get the benefit of having their files reviewed to determine if compensation should be paid.
NAB would also provide affected customers with financial assistance to seek professional independent advice where appropriately required. Australian Securities and Investment Commission (ASIC) has tied up with NAB to develop their Financial Advice Customer Response Initiative (CRI), a large review and remediation program for customers affected by non-compliant advice. ASIC will ensure that the CRI will provide a fair and effective 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. ASIC acknowledged NAB’s co-operation in this matter. This action is associated with ASIC’s broader Wealth Management Project.The Wealth Management Project was established in October 2014 with the objective of lifting standards by major financial advice providers The Wealth Management Project focuses on the conduct of the largest financial advice firms (NAB, Westpac, CBA, ANZ and AMP).
ASIC’s work in the Wealth Management Project covers a number of areas including co-ordinating with other Wealth Management participants and address the identification and remediation of non- compliant advice. This is in addition to the work ASIC is doing to ensure appropriate customer remediation where fees have been charged and no advice service has been provided.Also, seeking regulatory outcomes where appropriate against Licensee’s and advisers would be done. ASIC’s Wealth Management Project had banned few advisers from the financial services industry, namely – Amanda Ritchie, Stuart Murray Jamieson, Sharnie Kent, Martin Hodgetts, to name a few. Hence, the ASIC would attend to these matters and manage the regulatory schedules for the same.