ASIC has commenced Federal Court proceedings against Westpac in relation to alleged poor financial advice in relation to one of its advisers.
In four sample client files, the adviser:
• breached the best interests duty under the Corporations Act (the Act);
• provided inappropriate financial advice; and
• failed to prioritise the interests of clients.
Notably, this adviser’s conduct was not discussed in the recent hearings of the Royal Commission.
ASIC has brought proceedings against Westpac for a breach of:
• the best interests duty under section 961K of the Act;
• Westpac’s general licence obligations to:
- do all things necessary to ensure that the financial services covered by its licence are provided efficiently, honestly and fairly under ss912A(1)(a); and
- comply with financial services laws under ss 912A(1)(c).
Westpac has a significant remediation program underway in relation to this adviser’s conduct.
As at 14 June 2018, $12 million has been paid to clients affected by the poor advice and ongoing advice service failures.
The proceeding is listed for a directions hearing in Sydney on 19 July 2018 at 9:30am.
For more detail see ASIC commences civil penalty proceedings against Westpac for poor financial advice.
IMPORTANT NOTICE
This document is designed to provide helpful general guidance on some key issues relevant to this topic. It should not be relied on as legal advice. It does not cover everything that may be relevant to you and does not take into account your particular circumstances. It is only current as at the date of release. You must ensure that you seek appropriate professional advice in relation to this topic as well as to the currency, accuracy and relevance of this material for you.
Liability limited by a scheme approved under Professional Standards Legislation. Legal practitioners of Radford Lawyers Pty Limited are members of the scheme
Recent Comments