Westpac’s RC legacy penalty
Westpac to pay $113 million penalty for ‘widespread compliance failures in multiple businesses’.
This major penalty is reminder that the Australian financial system is still living of the findings of the Royal Commission into Misconduct into Banking , Superannuation and Financial services four years on.
Australian Securities and Investments Commission (ASIC) Deputy Chair Sarah Court said in formal statement, ‘the breaches found by the Court in these six cases demonstrate a profound failure by Westpac over many years and across many areas of its business to implement appropriate systems and processes to ensure its customers were treated fairly. Westpac, like all licensees, has an obligation to be honest and fair in its provision of financial services. Despite this, Westpac failed to prioritise and fund the systems upgrades necessary to help fulfil this obligation.
The securities and investments regulator made a list of the matters where there have been compliance breaches:
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Fees for no service
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General Insurance
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Inadequate Fee disclosure
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Deregistered company Accounts
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Debt on sale
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Insurance in super
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