The corporate regulator has imposed additional conditions on a superannuation trustee owned by NAB over insufficient disclosure of insurance charges.
ASIC said in a statement it imposed additional conditions on the AFSL of NAB super trustee, NULIS Nominees, citing “breakdowns in internal procedures”, including inadequate training of staff and updating of insurance policies.
These failures resulted in members of NAB-owned superannuation funds having inaccurate death and TPD insurance tests applied to them between May 2013 and July 2015, with approximately $1.6 million in members’ claims underpaid or declined.
In addition, ASIC said NAB identified 220,000 member accounts that were incorrectly charged fees to the tune of $34.7 million.
Under the terms of the conditions, NAB will appoint KPMG, which has been approved by ASIC, to oversee new risk and compliance procedures and report on the adequacy of the new management practices.