Westpac hit with $9.15m penalty on best interests
Westpac has been ordered to pay a $9.15 million penalty as a result of Federal Court action initiated by the Australian Securities and Investments Commission (ASIC) over poor financial advice.
ASIC announced today that the Federal Court had imposed the penalty in respect of 22 contraventions of section 961K of the Corporations Act relating to poor financial advice provided by a former Westpac financial planner, Sudhir Sinha, in breach of best interests duty and related obligations.
The court held that Westpac was directly liable for the breaches.
It said the decision came as a result of civil penalty proceedings brought by ASIC against Westpac in June, last year, after an investigation revealed internal Westpac review, including an internal bank investigation in 2010, had raised concern about Sinha’s compliance history yet he continued to receive several high achievement ratings.
ASIC deputy chairman, Daniel Crennan QC noted that Westpac, as Sinha’s responsible licensee, failed to properly monitor and supervise him for a period of time.
Recommended for you
The levy payable by financial advisers for the Compensation Scheme of Last Resort has almost quadrupled for FY26 as the government launches a formal review.
Melbourne and Perth-based Endeavor Asset Management has added 24 financial advisers to its AFSL this week, with overall industry numbers rising by more than a dozen.
The industry has reacted to the retirement of Stephen Jones as Minister for Financial Services, recognising his efforts on scams and financial reforms.
Australian advised clients are the most eager among global peers to invest in private markets, according to Hamilton Lane, with their knowledge of the asset class also being higher.
