The Federal Court of Australia has given a A$10.5m (£5.51m, $7.53m, €6.42m) fine to banking group Westpac in relation to regulatory proceedings about its financial product advice.
The penalty is in regard to the proceedings brought by Australia Securities and Investments Commission (Asic) in 2016 against Westpac Securities Administration Limited and BT Funds Management Limited.
Asic found “personal advice” was provided in relation to calls to 14 customers concerning the rollover of their external superannuation accounts, which was found to be in breach of the Corporations Act.
Neither company was licensed to provide personal financial advice.
Background
This news comes months after the Australian High Court confirmed that Westpac Securities Administration Limited and BT Funds Management Limited breached financial services laws, including the requirement to act in their clients’ best interests and the requirement to act honestly, efficiently and fairly.
The judgment upheld the Full Federal Court decision regarding the conduct of the companies, dismissing their appeal and holding that they breached the Corporations Act by providing personal financial product advice in calls made to 14 customers.
