Westpac to pay $10.5m penalty for personal advice case
The Federal Court has handed down a $10.5 million penalty to Westpac in relation to proceedings brought by the corporate regulator on the provision of financial product advice.
The penalty related to proceedings brought by the Australian Securities and Investments Commission (ASIC) in 2016 for personal advice that was found to have been provided in relation to calls to 14 customers concerning the rollover of their external superannuation accounts.
ASIC found this was in breach of certain provisions of the Corporations Act by Westpac Securities Administration and BT Funds Management.
Westpac said the penalty was fully provisioned in its first half 2021 accounts.
“We take our obligations to our customers very seriously," a spokesperson for Westpac said.
"This was a test case brought by ASIC against Westpac Securities Administration Limited and BT Funds Management Limited in relation to 14 customers concerning the rollover of their superannuation accounts.
"It was an important process for the financial services industry to provide clarity on the distinction between the provision of ‘personal’ and ‘general’ advice when speaking with our customers. The findings in this case have provided that clarity.”
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.