NAB CEO denies failure over advice scandal

Stuart Layt
NAB CEO Andrew Thorburn denies the financial advice scandal is a systemic failure of management.

The chief executive of the National Australia Bank has denied there's a systemic failure in its management structure in the wake of the financial advice scandal.

Andrew Thorburn, grilled on the issue at last week's federal parliamentary inquiry into the banking sector, was asked about the matter again during a Brisbane business lunch on Monday.

The inquiry highlighted the fact that no managers had been sacked, disciplined or left the bank after 43 financial planners were dismissed amid the scandal

"The reason it wasn't systemic is because we have 1700 planners in our network," Mr Thorburn said.

"And the practises were at the very minimum extremely sloppy and at worst downright fraudulent. And so they were then hidden from the bank."

Mr Thorburn also told the QUT business luncheon he understood customers had lost respect for banks, but insisted they were working to earn it back.

"There is definitely a feeling that banks have lost their way and need to answer some questions and need to be more transparent," he said.