02 May 2014
NAB Wealth will refund customers after it discovered during a review that some of its Navigator platform customers had incorrectly been compensated after an investment income error.
NAB Wealth discovered the original problem and compensated customers in December 2012. It self-reported the error to ASIC and has kept ASIC informed as it carried out an independent review of the investment income error by PricewaterhouseCoopers (PwC).
The review identified a small amount of additional compensation required. All affected customers are expected to be refunded this additional compensation as soon as possible.
As a result of the review, NAB Wealth is enhancing the operating effectiveness of the Navigator platform to prevent future errors in the allocation of investment income to customers.
Alongside the Navigator platform review, NAB Wealth is also taking the opportunity to review its breach detection, reporting and escalation processes and procedures.
The reviews do not in any way relate to the quality of NAB Wealth’s advice to its customers.
NAB Wealth Group Executive Andrew Hagger said the business would compensate customers where inadequacies in its investment income allocation processes and procedures had resulted in incorrect compensation.
“We will take every step to ensure that our customers are compensated and as soon as possible,” Mr Hagger said.
“We recognise our business needs to be transparent and accountable which is why we have proactively engaged ASIC on the issues we are addressing and why we are advising affected customers of any compensation.
“We have worked very closely and constructively with ASIC and have already implemented a range of measures to prevent future errors.
“These issues are largely around processes, systems and controls. We know there are improvements that need to be made and we have already started to make the necessary changes. We are working with PwC to provide an independent view on these changes to ensure best practice solutions are being implemented.
“Our focus is always on providing the best outcome for our customers and we will work proactively to improve our processes, systems and controls to do so,” he said.
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