Senior NAB executive Andrew Hagger continues his evidence about financial planners. Mathias Cormann says banks should not be judged hastily. Follow the day’s testimony live …
Hagger is detailing the steps NAB took to give customers “peace of mind”. Just a quick reminder: the falsification of the forms potentially rendered customers’ estate planning – their wishes for what should happen with their superannuation when they die – invalid.
Hagger says NAB wrote to all 2,520 customers. The bank has had difficulty reaching about 30 people.
As things stand today, there are about 250 customers who have not yet returned those forms. Over time, we think that will whittle down to a much smaller number again … That was our prime concern, that through our own sloppiness we had created this situation, which could affect the peace of mind of 2,520 customers.
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The royal commission is considering NAB’s notification to the corporate regulator about the falsification of nomination forms. Asic was not notified until 15 June last year, about six months after Meyn, a financial advisor, was fired over the practice.
The bank has a legal obligation to report significant breaches to the corporate regulator.
It should have been made in March, knowing what we know now. It should have been quicker. In the evolution of a reporting protocols with Asic, there’s the balance to be struck between the timeliness of the report and the information Asic wants to see in the report.
The extent of this practice does give rise to the question whether it should have been anticipated and detected earlier.
Our discussions with Asic aimed to be fulsome on the topic, not narrow.