NAB will write to customers who may have received non-compliant advice since 2009, and will offer compensation if claims against it are upheld.

The bank has paid $1.7 million in compensation to 87 clients since February.

NAB Wealth Group Executive Andrew Hagger admits mistakes in the bank’s financial planning business, but has promised to fix them.

“It’s important for our customers that we undertake this review in a thorough manner – and we will,” he said. “Where customers have suffered loss due to inappropriate advice, we will compensate them for that loss.”

The Australian Securities and Investments Commission (ASIC) has been working with NAB to develop its financial advice customer response unit.

“ASIC will ensure the unit will provide a fair and effective mechanism for customers to be properly compensated,” the regulator said.

Mr Hagger says each customer with a complaint will have a dedicated associate who can answer questions on the review process.

Legal expert Dimity Kingsford Smith will continue her role as an independent customer advocate, to ensure clients’ interests remain at the centre of the review.

Law firm Slater & Gordon, which has represented some claimants, has welcomed NAB’s move to offer a broader compensation scheme.

Commercial litigation lawyer Mark Walter says the onus is on the bank to ensure the scheme is fair and equitable.

“It’s important for the integrity of the scheme – and for those like it – that NAB customers are entitled to seek independent advice,” he said.

“Customers have the right to be confident that the review process, and any redress, is fair and equitable.”