• Advertise
  • About us
  • Terms and Conditions
  • Contact us
Monday, July 14, 2025
Australian Times News
  • News
    • Weather
    • Sport
    • Technology
    • Business & Finance
      • Currency Zone
    • Lotto Results
      • The Lott
  • Lifestyle
    • Entertainment
    • Horoscopes
    • Health & Wellness
    • Recipes
  • Travel
  • Expat Life
  • Move to Australia
No Result
View All Result
  • News
    • Weather
    • Sport
    • Technology
    • Business & Finance
      • Currency Zone
    • Lotto Results
      • The Lott
  • Lifestyle
    • Entertainment
    • Horoscopes
    • Health & Wellness
    • Recipes
  • Travel
  • Expat Life
  • Move to Australia
No Result
View All Result
Australian Times News
No Result
View All Result
Home News

Aussie bank hit with $18,5-million penalty for misleading clients

National Australia Bank fined by the Federal Court for system failures that meant customers weren’t properly informed about fees.

Mike Simpson by Mike Simpson
26-08-2021 15:02
in News
Photo credit: NAB

Photo credit: NAB

The Federal Court has ordered National Australia Bank (NAB) to pay an $18.5-million penalty for misleading its customers by not adequately making fee disclosures.

The Court also found the bank contravened its obligations as a financial services licence holder to “act efficiently, honestly and fairly by failing to have procedures and systems in place to provide timely and effective fee-disclosure statements”.

Sarah Court, Deputy Chair of the Australian Securities and Investments Commission (ASIC), said NAB’s system failures resulted in significant fee disclosure failures over an extended period.

This had caused harm to customers as the inaccurate information meant they couldn’t make informed decisions about the financial services they were paying for.

“The penalty of $18.5-million handed down to NAB is a timely reminder to financial services licensees to ensure they meet their obligations to their clients,” Ms Court stated.

Charged fees but failed to advise clients

According to the Federal Court, the bank breached the law on numerous occasions when it charged fees for personal advice without giving customers compliant fee-disclosure statements.

It also failed to provide fee-disclosure statements to clients within the time required, and made false or misleading representations to clients in fee-disclosure statements about the amount clients had paid for services.

AlsoRead...

The Broker who says ‘Yes’ when Banks say NO

The Broker who says ‘Yes’ when Banks say NO

8 July 2025
Leading with Trust: Why Quality still wins in the AI Era

Leading with Trust: Why Quality still wins in the AI Era

5 June 2025

The Court also found NAB had not established or maintained systems and procedures to identify whether services were provided in accordance with client-service agreements.

It had also failed to ensure its fee-disclosure statements were compliant; and had failed to identify instances where it was prohibited from charging service fees.

“Customers need to have confidence in their financial services providers that they will be charged correctly for the services they receive and given accurate and timely information,’ concluded the ASIC Deputy Chair.

Bank did admit its liability, court says

In her decision, Justice Davies observed that fee-disclosure statement obligations “are specific consumer-protection measures enacted for the safeguard of the interests of clients subject to ongoing fee arrangements and they are strict obligations, underscoring the seriousness of the contravening conduct”.

The Court acknowledged NAB’s efforts to make early admissions of liability and took this into account in determining penalty. This is the first penalty imposed by the court for fee-disclosure statements failures under the Corporations Act.

NAB has been ordered to pay ASIC’s costs in bringing the matter to court.

In a media statement released following the Federal Court’s judgement, NAB Group Executive, Legal and Commercial Services, Sharon Cook said: “We sincerely apologise to those customers who were impacted by this issue.

“To address this issue, NAB stopped charging ongoing service fees to customers of its former NAB Financial Planning business in 2019. In 2020, we established a remediation program which has to date paid approximately $31-million to more than 15,000 customers in order to make things right.”

Tags: Australian banksAustralian Securities and Investments CommissionbankingFederal Court
DMCA.com Protection Status

SUBSCRIBE to our NEWSLETTER

[mc4wp_form id=”2384248″]

Don't Miss

The Dating Wealth Gap Is Getting Wider: What You Should Know

by Fazila Olla-Logday
11 July 2025
Source: Pixabay
Lifestyle

The divide between wealth and romance is growing. As income inequality widens, financial status is playing a bigger role in...

Read more

The Broker who says ‘Yes’ when Banks say NO

by Pauline Torongo
8 July 2025
The Broker who says ‘Yes’ when Banks say NO
Business & Finance

When faced with constant loan rejection or last-minute withdrawals of support, Trelos Finance stands out as a solution.

Read more

Common Mistakes When Buying a Telescope — And How to Avoid Them

by Fazila Olla-Logday
1 July 2025
Common Mistakes When Buying a Telescope
Technology

You’ve spent hours scrolling through telescope specs online, dazzled by features and grand promises. The excitement builds—until your newly arrived...

Read more

From Portugal to Bali: Where Aussies Should Go for Your Next Coastal Holiday

by Fazila Olla-Logday
20 June 2025
Source: Flickr
Travel

Aussies, here is a guide to where you should go for your next coastal holiday.

Read more

Leading with Trust: Why Quality still wins in the AI Era

by Pauline Torongo
5 June 2025
Leading with Trust: Why Quality still wins in the AI Era
Business & Finance

If you're leading a software team today, you've likely noticed the shift: faster feature rollouts, routine automation, and AI taking...

Read more

How to Save on Airport Parking: Budget Tips Every Traveller Should Know

by Fazila Olla-Logday
3 June 2025
How to Save on Airport Parking
Travel

Saving money on airport parking can be a challenge,but here are some budget friendly tips to help you navigate.

Read more

Why Australian Investors are Betting on the Aviation Maverick Louis Belanger-Martin

by Pauline Torongo
28 May 2025
Why Australian Investors are Betting on the Aviation Maverick Louis Belanger-Martin
Business & Finance

Bélanger-Martin’s ambitions stretch beyond redefining inflight comfort—they’re rooted in resurrecting the romance of supersonic travel with a modern twist.

Read more
Load More

Copyright © Blue Sky Publications Ltd. All Rights Reserved.
australiantimes.co.uk is a division of Blue Sky Publications Ltd. Reproduction without permission prohibited. DMCA.com Protection Status

  • About us
  • Write for Us
  • Advertise
  • Contact us
  • T&Cs, Privacy and GDPR
No Result
View All Result
  • News
    • Weather
    • Sport
    • Technology
    • Business & Finance
      • Currency Zone
    • Lotto Results
      • The Lott
  • Lifestyle
    • Entertainment
    • Horoscopes
    • Health & Wellness
    • Recipes
  • Travel
  • Expat Life
  • Move to Australia

Copyright © Blue Sky Publications Ltd. All Rights Reserved.
australiantimes.co.uk is a division of Blue Sky Publications Ltd. Reproduction without permission prohibited. DMCA.com Protection Status