“The breaches involved a breakdown in risk management and communication procedures following the transfer in 2012 and 2013 of all members in a number of products to MLC MasterKey Business Super (MKBS) and MLC MasterKey Personal Super (MKPS), as well as changes made to the death and total and permanent disablement (TPD) insurance of MKBS and MKPS members,” ASIC said in a statement yesterday.

ASIC estimates that approximately 400,000 members were impacted by the insurance changes.

It said the system breakdowns included “inadequate disclosure of insurance changes to members, inadequate training for staff and insurance policies not being updated”.

As part of the conditions imposed on the licence, NULIS must 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.

KPMG has been appointed to conduct the review, with the first report to be submitted to ASIC and the trustee by July 2017.

NAB has confirmed that a total of $34.7 million will be paid to approximately 220,000 customer accounts, with the average compensation amount per customer account expected to be about $150.