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Financials

Australia's NAB to refund 62,000 wealth management clients

SYDNEY, July 24 (Reuters) - National Australia Bank will refund A$25 million ($18.38 million) to around 62,000 wealth management clients who were wrongly compensated, capital markets regulator said on Friday.

The NAB compensation follows an independent review by PricewaterhouseCoopers at the request of the Australian Securities & Investments Commission (ASIC).

ASIC is cracking down on financial planning and advice divisions of major banks after a scandal at the Commonwealth Bank of Australia (CBA) involving wrong or misleading financial advice last year.

Earlier this year, ANZ Banking Group and Macquarie Group separately agreed to compensate customers for the banks’ wealth decisions.

NAB’s errors date back to 2001 and are centred on processes relating to Navigator - a platform the bank inherited when it acquired Aviva in 2009, it said in a statement.

“Our teams have worked extensively, with oversight by PwC and ASIC, to ensure the right processes, systems and controls are now in place,” Andrew Hagger, Group Executive of NAB Wealth, said in a statement.

“These errors are in no way related to the quality of NAB Wealth’s advice to its customers.” ($1 = 1.3604 Australian dollars) (Reporting by Swati Pandey; Editing by Ryan Woo)

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