Management of the National Australia Bank subsidiary, Clydesdale Bank, was in Australia yesterday to give an investor briefing ahead of the Clydesdale demerger and initial public offering, and they were keen to put the UK bank's conduct issues to bed.Clydesdale, which describes itself as a "very straightforward" UK regional retail and SME bank, will be listed on the London Stock Exchange, where it will rank in the FTSE 250, and will also have securities traded on the Australian Securities Exchange, where it will rank in the S&P/ASX 100.Clydesdale has £2.1 billion to cover legacy conduct issues, made up of £986 million of unused provisions and a £1.1 billion capped indemnity provided by NAB.Future losses will be split, with 90.3 per cent borne by NAB and 9.7 per cent by Clydesdale.Clydesdale is working through several conduct issues, the biggest of which is the mis-selling of payment protection insurance. The others are interest rate hedging products and certain fixed rate loans.Clydesdale's chief operating officer Debbie Crosbie said the bank had made offers to interest rate hedging customers and was winding up the process.Crosbie said that it was back to business as usual as far as fixed rate loans were concerned.On the issue of PPI, Crosbie said the bank had adequate coverage and expected to close the process by 2018. Currently, "walk-in" complaints are running at 3300 a month and the average compensation is £4000.The bank has developed a "customer fairness model" to mitigate future conduct risks."We will make sure we are set up well for the future. Changing the culture is important for us and we are making sure we learn the lessons from the past," Crosbie said.