BT fined $20m for incorrect commission payments

BT/westpac/Asgard/ASIC/

11 April 2022
| By Laura Dew |
image
image
expand image

BT Funds Management has been fined $20 million by the Australian Securities and Investments Commission (ASIC) for incorrectly charging commission payments to certain superannuation fund members.

The organisation charged super members insurance premiums which included commission payments until 2020. These had been banned under the Future of Financial Advice reforms since 2013.

Members of Asgard Independence Plan Division Two were also charged commission via premiums paid to financial advisers, despite members electing to have that payment removed from their account.

It also found BT, which was a subsidiary of Westpac, misrepresented to members that proper deduction had been made, even though commission were not permitted.

ASIC deputy chair, Sarah Court, said: “Over 9,000 Asgard Fund members were incorrectly charged commission payments totalling more than $9 million. This misconduct was caused by the failure to implement proper systems to ensure consumers are correctly charged.

“As the Court finalises these matters against Westpac, we urge Westpac, and other financial institutions, to look at their culture of compliance and invest in systems that mean incorrect charging of fees, premiums and commissions does not occur.”

Westpac said it would pay over $9.8 million in remediation to over 9,900 members by July 2022.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks 1 day ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

3 weeks ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 6 days ago

TOP PERFORMING FUNDS