National Australia Bank has begun writing to clients who may have received poor financial advice as part of a broader initiative that has seen $1.7 million in compensation paid to clients since February 2015.
NAB's Financial Advice Remediation program, first announced by the bank in August 2015, is part of a process agreed to by ASIC and the bank to conduct a large review and remediation program for clients who have been affected by non-compliant advice since 2009.
A statement by ASIC said NAB's Financial Advice Customer Response Initiative (CRI) will "provide a fair and effective mechanism for customers to be properly compensated".
The CRI is also subject to independent scrutiny by an external consultant, which will report its findings to ASIC, said the regulator.
In a communication to the market released yesterday, NAB Wealth group executive Andrew Hagger noted that the bank had promised to start writing to customers in October in an August update.
"We’re committed to helping restore customer trust and confidence in the financial planning industry," Mr Haggar said.
"As part of this, we’re taking a detailed look at our advice business, acknowledging that we may have made mistakes. Where we identify these, we’ll try to make things right.
"In August, we said we would begin writing to customers starting in October who may have received inappropriate advice dating back to 2009. We have now started this process," he said.
Since February, NAB has made $1.7 million in payments to 87 customers after "resolving" their claims for compensation, NAB said.
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