Australia’s NAB reviews advisory arm as inquiry reveals misconduct
The National Australia Bank said today that the future of its wealth advisory operations is under review as a major inquiry compounds the regulatory pressure the company and other big Australian banks is already facing.
Andrew Hagger, chief customer officer at NAB told the royal commission leading the inquiry into misconduct: “NAB is continually looking at our overall portfolio, but … there’s no announcement to make here today to the Royal Commission.”
According to reports, the Commission was presented earlier today with new evidence in the form of a file note, written by Hagger, which appears to confirm that the bank’s top executives are indeed discussing a potential sale.
The file note also refers to concerns former executive general manager, wealth advice, Greg Miller voiced regarding the “shaving” of bonuses for NAB’s senior management.
NAB has admitted wrongdoing, and that some of its advisers had engaged in miss-selling. The royal commission’s inquiry, which is looking at the so-called “Big Four” banks in the country, has uncovered widespread misconduct within the Australian wealth management sector, and has led to a public outcry.
According to Citigroup, NAB’s wealth management business is worth around $3bn. Other companies embroiled in the advisory fees scandal are Commonwealth Bank of Australia (CBA), the Australia and New Zealand Banking Group (ANZ), Westpac and AMP, the Sydney-based financial services company.
The Royal Commissions’s inquiry continues.