Australian Securities and Investments Commission deputy chairman Daniel Crennan has warned financial institutions they need to stop dragging their heels on court actions and customer repayments on the back of a record penalty handed to National Australia Bank.

On Friday, Federal Court Justice David Yates imposed a $57.5 million penalty on NAB after its subsidiaries MLC Nominees and NULIS were found to have made false and misleading representations. The court also found the institutions failed to deliver their services efficiently, honestly and fairly as required under the Corporations Act.