Australian Securities and Investments Commission v National Australia Bank Ltd

In the case of Australian Securities and Investments Commission v National Australia Bank Ltd, the Australian Securities and Investments Commission (ASIC) brought an action against the National Australia Bank (NAB), alleging that NAB had engaged in misleading or deceptive conduct, made false or misleading representations, and breached several sections of the Australian Securities and Investments Commission Act 2001 (ASIC Act). The dispute centred on fees charged by NAB for periodical payments, where NAB had no contractual entitlement to charge these fees but continued to do so, omitting to inform customers of the wrongful charging. The Federal Court was tasked with determining whether NAB's conduct was misleading or deceptive and whether it contravened specific provisions of the ASIC Act.

The court needed to ascertain if NAB's conduct constituted misleading or deceptive conduct under sections 12DA and 12DB of the ASIC Act, whether the representations made by NAB were misleading, and if NAB's conduct was unconscionable under section 12CB of the ASIC Act. Additionally, the court had to consider whether NAB's conduct contravened sections 12CB and 12CC of the ASIC Act and whether NAB had complied with the obligations of its financial services licence under section 912A(1) of the Corporations Act 2001 (Cth).

The court concluded that NAB's conduct, particularly from January 2017 until July 2018, was indeed unconscionable as it involved continuing to charge periodical payment fees without a contractual basis and failing to inform customers of this wrongful conduct. This conduct contravened section 12CB(1) of the ASIC Act. The court dismissed the other claims related to misleading or deceptive conduct and breaches of the ASIC Act and Corporations Act. The court declared that NAB's conduct was unconscionable and ordered the parties to be heard on any further relief and the question of costs.

In light of these findings, the court dismissed the claims of misleading or deceptive conduct, false and misleading representations, and breaches of the ASIC Act and Corporations Act. However, it declared that NAB's conduct was unconscionable, and further proceedings were scheduled to determine any additional relief and costs.