Westpac to pay $10.5m penalty for personal advice case

westpac

23 August 2021
| By Chris Dastoor |
image
image
expand image

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.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

6 hours ago

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 11 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 9 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 12 hours ago