ASX Announcement - ASIC Accepts Enforceable Undertakings from National Australia Bank - 20 October 2004

The National Australia Bank today provided a range of enforceable undertakings to the Australian Securities and Investments Commission (ASIC) in relation to the currency options trading losses that occurred in January this year.

The ASIC media release and details of the enforceable undertakings can be accessed at www.asic.gov.au.

In summary they require the National to:

• Identify, record and inform ASIC of any future breaches of the National's Australian Financial Services Licence.
• Ensure that there are appropriate procedures related to the role of responsible officers and representatives of the National.

Earlier this year the National released the PricewaterhouseCoopers (PwC) report on the losses and the Australian Prudential Regulation Authority (APRA) report into the same issue.

The National accepted and is implementing remedial actions flowing from the PwC and APRA reports.

National Chief Executive Officer Mr John Stewart said: "The enforceable undertakings provided to ASIC complete the regulatory review of the currency options trading losses.  We are now working hard to implement initiatives in the PwC report and the requirements of both APRA and ASIC."

For further information:

Brandon Phillips    
Group Manager, Group Corporate Relations   
03 8641 3857 work    
0419 369 058 mobile    

Samantha Evans   
Group Communications Adviser
03 8641 4982 work
0404 883 509 mobile