NAB Wealth identified the original error that occurred on NAB Wealth’s Navigator platform in 2012 and subsequently paid $1.9 million in compensation to 43,000 customers.
Following a review of the matter, however, NAB Wealth has discovered an additional amount of compensation is required as the initial amount refunded to its customers was incorrect.
In a statement released yesterday, NAB Wealth said all affected customers are expected to be refunded this additional compensation as soon as possible.
NAB Wealth group executive Andrew Hagger said the business will compensate customers where inadequacies in its investment income allocation processes and procedures have resulted in incorrect compensation.
“We will take every step to ensure that our customers are compensated and as soon as possible,” said Mr Hagger.
At ASIC’s request, NAB Wealth has also appointed Pricewaterhouse Coopers (PwC) to review the adequacy of compensation already paid, NAB Wealth’s operating system and its capacity in allocate income to customers and NAB Wealth’s breach identification, reporting and management process.
Mr Hagger said the main issues are around processes, systems and controls.
“We know there are improvements that need to be made and we have already started to make the necessary changes,” Mr Hagger said.
“We are working with PwC to provide an independent view on these changes to ensure best practice solutions are being implemented.”
ASIC commissioner Greg Tanzer said it is important for entities to ensure that, where errors do occur, they are identified as early as possible and appropriately rectified.
“ASIC will work with entities who report issues to us to ensure consumers are compensated in a timely, effective way,” said Mr Tanzer.
ASIC also acknowledged the “cooperative approach taken by NAB”.
