The Federal Court of Australia has fined A $ 10.5 million (Â£ 5.51 million, $ 7.53 million, â¬ 6.42 million) on Westpac banking group in connection with ” a regulatory procedure concerning its advice on financial products.
The sanction concerns the proceedings initiated by the Australian Securities and Investments Commission (Asic) in 2016 against Westpac Securities Administration Limited and BT Funds Management Limited.
Asic discovered that “personalized advice” had been provided regarding calls to 14 clients regarding the rollover of their external superannuation accounts, which was found to be contrary to the Corporations Act.
Neither company was authorized to provide personal financial advice.
The news comes months after the Australian High Court confirmed that Westpac Securities Administration Limited and BT Funds Management Limited violated financial services laws, including the obligation to act in the best interests of their clients and the obligation to act honestly, effectively and fairly.
The judgment upheld the full Federal Court ruling on the conduct of the companies, dismissing their appeal and finding that they had violated the Companies Act by providing advice on personal financial products in calls to 14 clients.