National Australia Bank staff falsified witness signatures on customer death beneficiary forms
DODGY financial planners at NAB thought it was “common practice” and “acceptable” to falsify witness signatures on customer death beneficiary forms.
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DODGY financial planners at NAB thought it was “common practice” and “acceptable” to falsify witness signatures on customer death beneficiary forms.
The banking royal commission yesterday heard incorrect witnessing of beneficiary nomination forms for superannuation funds became a “social norm” but potentially rendered invalid the final wishes of 2520 NAB customers.
These important documents set out what the client would like to happen with their superannuation savings when they die.
It was also revealed an internal report prepared for the bank’s chief risk officer a year before the scandal was detected in 2016 warned of a breakdown in judging “right and wrong” among planners.
But the report was kept secret and the problem festered.
Senior NAB executive Andrew Hagger said the bank acted to ensure the customers were not affected, noting most of the clients had re-signed their forms.
“We have dealt very comprehensively to the client issue and that was our prime concern, that through our own sloppiness we had created this situation which could affect the peace of mind of 2520 customers,” Mr Hagger told the inquiry yesterday.
About 325 NAB staff, 204 of them financial advisers, were found to have failed to correctly witness forms setting out who individuals want to receive their superannuation funds when they die.
The inquiry heard NAB employees believed it was common practice and acceptable.
Mr Hagger said the staff thought they were taking a shortcut in the interests of the client but it was clear on the form that witnesses had to be present when it was signed.
“I think a social norm had crept in and become entrenched,” he said.
NAB sacked one adviser, Bradley Meyn, who forged a couple’s initials on the forms, which Mr Hagger said crossed the line.
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The commission heard Mr Meyn was sacked in December 2016, but NAB failed to inform ASIC until last June.
Other staff were given an amnesty to come forward, with those financial advisers losing 25 per cent of their bonuses.
The commission heard several regional wealth executives also suffered consequences as well as the leaders of NAB’s wealth advice business.
Mr Hagger, the chief customer officer in NAB’s consumer banking and wealth management division, said customers expected action at the management and leadership level. His bonus was cut by $60,000 last year to $960,000.
“What we’ve done here is followed all the way through from Mr Meyn’s situation through to finding a more entrenched practice which had occurred within the division,” he said.
In a November 2017 email, NAB CEO Andrew Thorburn noted those involved in the issue had somewhere between 20 and 100 per cent of their bonuses reduced for the year.
Separately, the commission also heard yesterday about a dodgy ANZ financial planner, identified only as “Mr A”, who used clients’ self-managed super to buy a marina apartment development for his own company.
West Australian police are investigating allegations the sacked adviser took $235,000 from three customers’ accounts without their authorisation, the inquiry heard yesterday.