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ASIC takes major bank to court

Lachlan Maddock
— 1 minute read

BREAKING ASIC has commenced civil penalty proceedings in the Federal Court against a Big Four bank, seeking findings of several thousand contraventions of the ASIC Act and Corporations Act.

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>ASIC alleges that from December 2013 to February 2019, NAB engaged in fees for no service conduct by failing to provide ongoing financial planning services to a large number of customers while charging fees to those customers.

ASIC also alleges that NAB failed to issue, or issued defective fee disclosure statements (FSDs). ASIC alleges that the defective FSDs contained false or misleading representations that did not accurately describe the fees the customer paid and the services the customer received. 

It is ASIC's case that NAB engaged in unconscionable conduct from May 2018 by continuing to charge ongoing service fees to customers even though it knew it had not delivered the services and had issued defective FSDs.  

The maximum civil penalty for contraventions alleged against NAB are $250,000 per contravention of s962P (charging ongoing fees after the termination of an ongoing fee arrangement) and s962S (failing to provide a timely FDS), and $1.7 to $2.1 million maximum penalty for breaches of s12CB (unconscionable conduct) and s12DB (false or misleading representations). 

 

ASIC takes major bank to court
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