ASIC hands yellow card to NAB

National Australia Bank has provided the Australian Securities and Investments Commission with enforceable undertakings, aimed at improving its key systems and processes. Any future breaches by NAB of an enforceable undertaking would result in a red card and threaten its licence. The undertaking requires NAB to prepare a series of reports, and have them independently audited, to satisfy ASIC that NAB is complying with its obligations under the Corporations Act and its financial services licence.

The reports and audit opinions are to ensure that NAB properly records and escalates to ASIC breaches of its licence and that the bank has adequate procedures to select and monitor responsible officers and authorised representatives. In addition, NAB must give ASIC copies of reports on remedial work ordered by the Australian Prudential Regulation Authority after its investigation into NAB’s foreign currency option trading scandal earlier this year.

Advertisement