NAB set to pay A$25m to Navigator customers following review
(28 July 2015 – Australia) National Australia Bank (NAB) said it will pay out A$25 million following an independent review of its Navigator Wrap wealth management platform.
The review identified errors in the way the income and tax was allocated on the platform, resulting in around 62,000 customers receiving less than they should have.
NAB Wealth group executive Andrew Haddar said the problems dated back to 2001, and predated the bank's ownership of Navigator, which it acquired as part of its 2009 takeover of Aviva and integrated the business into its operations in 2011.
"While this is a legacy issue, we took deliberate steps to make absolutely sure we could get the fairest outcome for our customers," he said.
"These errors are in no way related to the quality of NAB Wealth's advice to its customers," Haddar said.
The bank says the average payout will be A$400 per customer, although half of them will receive less than A$100.
NAB launched a review of Navigator with accounting giant PricewaterhouseCoopers in 2014 after reporting issues with the platform to the Australian Securities & Investments Commission (ASIC).
"ASIC expects banks to vigilantly monitor their platforms for issues such as this," ASIC commissioner Greg Tanzer said in a statement.
"Any issues identified should be swiftly and pro-actively reported to ASIC, with a view to promptly compensating customers."
The payments are not expected to have any impact on NAB's full year results.
Subscribe