MLC investors act against MLC

National Australia Bank is facing legal action from unhappy MLC clients who were promised $60 million compensation on losses from superannuation products. The promise was made in August 2002 and the customers are still waiting.

The potential legal action relates to delays in compensation for unit price reductions on October 30, 2001, which affected around 270,000 investors with $4.5 billion funds under management with National Australia Financial Management. No compensation has yet been made internal MLC planners allege, however a NAB spokeswoman said the bank intends to make the first-phase payments within weeks and continue throughout 2003.