NAB tops the super refunds payouts
Bank-owned superannuation funds forked out A$124 million in refunds and compensation between 2003 and 2017, the banking royal commission heard yesterday. Michael Hodge, counsel assisting, told the commission NAB acknowledged that between September 2012 and January 2017" approximately $35 million in plan service fees were incorrectly charged to 220,000 members where they did not have a plan adviser linked to their account." Around 205,000 MLC MasterKey Personal Super members will be refunded the plan service fees they paid whilst in this product, amounting to a further $87 million in refunds and other compensation to be paid by NAB. Two other banks mentioned in Hodge's opening address at the fifth round of hearings in Melbourne were ANZ and Westpac, butrefunds itemised by Hodge for each bank were chump change in comparison to NAB's. ANZ, Hodge said, acknowledged that from 2003 to 2015 "certain OnePath entities continued to deduct around $1 million in adviser service fees from the accounts of about 2900 members of managed investment scheme and superannuation funds after these accounts ceased to be allocated to an adviser. Westpac acknowledged that some customers of its Asgard products "continued to be charged advice-related fees which were retained by the trustee when they ceased to be advised by financial advisers and the trustee should have ceased charging those fees, Hodge said, leading to $630,000 in compensation. Hodge confounded guesswork that these hearings may lead to exploring alleged misconduct of not-for profit super funds. Hodge told commissioner Kenneth Hayne that "on the whole, it is our view that the commission's review of documents identified fewer examples of types of conduct of the industry fund trustees that raise questions warranting oral consideration as to whether the conduct is misconduct or conduct falling below community standards or inappropriate use of retirement savings when compared with that of the retail funds that will appear in this round of hearings. "In a number of cases, though certainly not all, the conduct of the industry funds which we have identified as warranting consideration during the oral hearings, is very nuanced."