The “Wealth Management” arm of the National Australia Bank (NAB) has been caught up in the “Financial Planner” scandal.
The National Australia Bank (NAB) and its subsidiary bank Clydesdale Bank in the United Kingdom have been hit with a record fine of $40 million for dishonest conduct by the UK Financial Conduct Authority.
Adele Ferguson has revealed how the Chairman of the Senate Economics Reference Committee, Senator Sam Dastyari, has contacted the Chairman of the British Treasury Select Committee, Andrew Tyrie following the release of a damning parliamentary report into alleged misconduct with NAB’s UK operations. A link to the article “British help adds to NAB’s woes” can be found here.
The British Treasury Select Committee Report can be found here.
At Recommendation 24 the Committee noted that the NAB subsidiary Clydesdale Bank created a product that retained the risks and complexities of the regulated product, but had none of the safeguards. The bank created a product to avoid the requirements imposed on regulated financial products and to expose its customers to much greater risks.
Adele Ferguson has exposed the “greed is good” culture at NAB‘s UK Operations in her article NAB’s dream-destroying ‘Death Star’ that is Clydesdale Bank . A copy of this article can be found here.
Michael West revisits the corrupt conduct of the previous Chairman of ASIC, Tony D’Aloisio.A copy of this article can be found here.
The head of NAB Wealth, Andrew Heggar, fronted the Senate Economics Reference Committee on 6 March 2015. An analysis of the meeting by Adele Ferguson can be found here. here.
This article finished with a prophetic quote from Senator Peter Whish-Wilson.
But the last word should go to Senator Peter Whish-Wilson, who said: “We know there may be more financial scandals lurking out there under the surface waiting to be uncovered.”
Fairfax Media reporter Michael West has revisited to practice of MLC Limited a part of NAB Wealth of seconding lawyers to ASIC to ensure the interests of NAB are a focus of the attention of ASIC lawyers.
This article can be found here.
Michael West ends his article by stating:
“You can take it therefore that there is substance to such claims and that it is a fair call that the systemic problems which remain unreported, run deeper.”
Michael West noted in an earlier article how the major banks “really are above the law”.
This article can be found here.
A letter has been sent to the Chairman of ASIC outlining a typical scenario where the “seconded” lawyers from NAB Wealth assist ASIC to achieve “regulatory outcomes” favourable to NAB Wealth.
Since NAB Wealth has its own lawyers seconded to ASIC, there is little incentive to be pro-active when it comes to formal “breach reporting”. Any “issues” can be dealt with secretly behind closed doors at ASIC.
The poor compliance performance of NAB Wealth is covered by reporter Clancey Yeates here.
The attempted cover-up by NAB Wealth and the lack regulation of NAB Wealth by ASIC is covered in more detail in an article by Adele Ferguson and Ruth Williams here. The article quotes Senator Dastyari, the Chair of the Senate Economics Reference Committee:
“How on earth as a major financial institution did National Australia Bank think covering this up was going to be acceptable?” Senator Dastyari asked.
Jeffrey Morris, the Commonwealth Bank Whistleblower, has stated that the Financial Planner Scandal is only the “tip of the iceberg” when it comes to misconduct by the “wealth management” arms of the major banks. More details can be found here.
The Chairman of ASIC in now claiming that ASIC will expand its probe into misconduct at NAB Wealth as reported here.
The major banks have a conflict of interests when it comes to the administration of superannuation funds, as has been covered in more detail by Adele Ferguson in the article which can be found here. .
The NAB has also been caught up in a major scandal in the United Kingdom that required substantial compensation payments to the victims. More information on this scandal can be found here.
Another scandal claimed the scalp of a former NAB Chairman as well as the CEO. More details can be found here.
This tab updated on 24 March 2015