National Australia Bank will pay out $25 million to about 62,000 customers affected by problems with its Navigator Wrap wealth management platform.
The bank said an independent review had identified errors in the way income and tax was allocated on the platform, which led to customers receiving less than they should have.
NAB Wealth group executive Andrew Haddar said the problems dated back to 2001, predating the bank’s ownership of Navigator, which it acquired as part of its 2009 takeover of Aviva and integrated the business into its operations in 2011.
“While this is a legacy issue, we took deliberate steps to make absolutely sure we could get the fairest outcome for our customers,” he said.
“These errors are in no way related to the quality of NAB Wealth’s advice to its customers.”
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The bank says the average payout will be $400 per customer, although half of them will receive less than $100.
NAB launched a review of Navigator with accounting giant PwC in 2014 after reporting issues with the platform to the Australian Securities & Investments Commission.
“ASIC expects banks to vigilantly monitor their platforms for issues such as this,” ASIC Commissioner Greg Tanzer said in a statement.
“Any issues identified should be swiftly and pro-actively reported to ASIC, with a view to promptly compensating customers.”
The payments are not expected to have any impact on NAB’s full year results.
