NAB Has Disregard For Law: Inquiry Lawyers

Lawyers at the Royal Banking Commission have said NAB has committed crimes and are open to criminal charges.

National Australia Bank has a disregard for the law and regulators, lawyers assisting the banking royal commission say.

Counsel assisting the inquiry have suggested NAB's superannuation trustees MLC and NULIS may have engaged in misconduct by charging customers fees for no service.

The conduct extended to failing to act in the best interests of superannuation members where NAB was seeking to minimise the amounts to be paid in compensation to customers, a submission released on Friday night said.

NAB was not full and frank with the regulator about the amount of expected remediation or the loss to members charged fees for advice services that were not provided, counsel assisting said in outlining conduct falling below community standards and expectations.

The submission pointed to the bank's behaviour over the last few years over fees for no service.

"Assessed as a whole, it is submitted that this behaviour indicates a disregard on the part of the NAB Group for members of the relevant superannuation funds, for regulators and for the law," counsel assisting said.

The Australian Securities and Investments Commission is already investigating "suspected offending" by the NAB group over fees for no service.

Counsel assisting's closing submission also criticised both ASIC and the Australian Prudential Regulation Authority over their handling of issues raised during the royal commission's two-week public hearing on superannuation.

"It is submitted that the case studies suggest that the approach of neither APRA nor ASIC to regulation of superannuation entities is sufficient to achieve specific or general deterrence."

The evidence suggested APRA was reluctant to commence court proceedings and take public enforcement action, the submission said.

"Its approach to dealing with the intransigence of IOOF could not be considered to be effective in achieving deterrence or generating the development of insight on the part of IOOF."

Counsel assisting said two examples of ASIC's approach - over the fees for no service issue and the way three big banks sold superannuation products - raised questions as to whether it has struggled to date to act as an effective conduct regulator.

The royal commission heard CBA and its now-CEO Matt Comyn tried to convince the regulator to issue a media release rather than take stronger action over the sale of superannuation products in bank branches.

Counsel assisting said it might be thought the approach of Australia's largest listed company "suggests the collapse of ASIC's regulatory authority".