ASIC investigates NAB breach report shortfall

Mr Hagger voluntarily appeared before the ‘scrutiny of financial advice’ inquiry on Friday, telling senators that ASIC had “served notice” on the bank after reading in newspaper reports that NAB had fired as many as 37 financial advisers – a much higher number than the eight breach reports filed with the corporate regulator.

He also revealed the bank has actually fired 41 employed or affiliated advisers in recent years, slightly higher than the figure previously reported in the Fairfax newspapers.

The bank executive defended a document outlining the findings of an internal review – which was leaked to Fairfax and tabled in parliament last week – saying it is a sign that NAB took the Senate inquiry into CBA financial planning and the performance of ASIC seriously.

“This was an internal document – it was not written for public consumption. The point that I’m making to you is that it’s part of a healthy system,” he said.

“At some point in time there will be an adviser who does the wrong thing. And the mark of a good organisation is what you do at that time."

Mr Hagger said the bank will compensate any other clients who are found to have received inappropriate advice.