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19-355MR ASIC releases report about NULIS’ compliance with licence conditions
ASIC today released an Independent Expert Summary Report prepared by KPMG summarising its work on the compliance and risk management practices of NULIS Nominees (Australia) Limited (NULIS), the superannuation trustee of the National Australian Bank (NAB) group.
KPMG’s work relates to additional licence conditions imposed on NULIS by ASIC after concerns about the pattern of breach notifications from NULIS during 2015 and 2016.
The reported breaches indicated failures in risk management and communication procedures including inadequate disclosure of insurance changes to members, insurance policies not being updated and inadequate training for staff.
The licence conditions required NULIS to engage an ASIC-approved independent expert to assess and report on the adequacy of its compliance and risk management practices for its retail and wrap superannuation funds (Refer 17-022MR). NULIS agreed to the conditions and KPMG was appointed to review, among other things, NULIS’:
- risk management procedures;
- process for implementing product changes, disclosure and reporting to members; and
- procedures for managing conflicts of interest within NULIS’ superannuation business, including the assessment of related-party service providers.
KPMG’s final report summarises the series of reports it had prepared for NULIS in compliance with the additional licence conditions.
NULIS accepted all of KPMG’s recommendations and reported to ASIC this month that it has implemented the recommended changes to policies and procedures covering governance and reporting lines, product redesign, training, risk management and managing conflicts of interest.
NULIS has now met the requirements of the additional licence conditions.
ASIC remains engaged with NULIS as NULIS seeks to continue to improve its operations and address recommendations made by the Financial Services Royal Commission. ASIC is also currently taking legal proceedings against NULIS (see below).
ASIC commenced proceedings in the Federal Court of Australia on 6 September 2018 against two entities in NAB’s wealth management division, NULIS Nominees (Australia) Limited (NULIS) and MLC Nominees Pty Ltd (MLC Nominees). The court proceedings relate to fees charged by both entities to a significant number of their superannuation members for services not provided. (Refer 18-259MR).