A statement issued by ASIC this morning lists “breakdowns in internal procedures” including insufficient disclosure of insurance changes, inadequate training of staff and updating of insurance policies.
These failures resulted in members of NAB-owned superannuation funds having inaccurate death and TPD insurance tests applied to them between May 2013 and July 2015, with approximately $1.6 million in members’ claims underpaid or declined.
In addition, the statement said that NAB has identified 220,000 member accounts that were incorrectly charged fees at a value of $34.7 million.
Under the terms of the conditions, NAB will appoint KPMG – who has been approved by ASIC – to oversee new risk and compliance procedures and report on the adequacy of the new management practices.
