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Bank busted for ownership non-disclosure

An ASIC investigation of NAB-aligned dealer groups has discovered failures to disclose relationships between advisers, licensees and product issuers within the group.

The investigation found 150,000 customers received deficient disclosure on advice documents relating to MLC-branded financial products and those of NAB’s boutique fund stable.

The ASIC statement said that the defective disclosures were the result of “process error”.

Affected customers will now receive a “corrective disclosure” when they log into the MLC website for a three-month period.

“NAB has also agreed to write to the remainder of affected customers currently invested in related products, explicitly acknowledging the issue and providing corrective disclosure,” said a statement from ASIC.

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Failure to disclose relevant relationships is a breach of the Corporations Act.

The investigation was part of ASIC’s wealth management project, looking into vertical integration in the six largest financial advice networks.

Bank busted for ownership non-disclosure
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