(Adds background, details of court case)
Dec 17 (Reuters) - Australia's markets watchdog on Tuesday said it commenced court action against National Australia Bank NAB.AX for charging fees for no service and for failures in disclosing fees appropriately.
The Australian Securities & Investments Commission's case stems from a government-ordered inquiry last year that found entrenched misconduct at major financial institutions.
NAB and its big banking peers have had to dole out billions of dollars to compensate aggrieved customers, with NAB alone setting aside a A$2.09 billion ($1.42 billion) pot. engaged in unconscionable conduct from at least May 2018 by continuing to charge ongoing service fees to certain customers," ASIC said in a statement.
Fees for no services offences could invite a maximum penalty of A$250,000 per breach, while unconscionable conduct and misrepresentation A$1.7 million to A$2.1 million a breach, ASIC said.
The regulator added that NAB did not stop charging fees to its customers until February this year.
NAB did not immediately respond to a Reuters request for comment.
($1 = 1.4736 Australian dollars)