Justice Beach on Friday handed down his decision in the last of six separate civil penalty proceedings filed by ASIC against Westpac in November 2021 penalising Westpac A$40 million for charging advice fees to over 11,800 deceased customers. Over a 10-year period, Westpac and related entities within the Westpac group, charged over $10.9 million in advice fees to deceased customers for financial advice services that were not provided due to their death.

The Federal Court has ordered Westpac to pay penalties aggregating to $113 million for widespread compliance failures across multiple businesses, including Westpac’s banking, superannuation, wealth management and insurance brands, ASIC pointed out. ASIC Deputy Chair Sarah Court said, “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. “Over the course of 13 years, more than 70,000 customers have been affected by these failures, either by being incorrectly charged or given the wrong information. The sheer scale of this impact suggests that, at the time, Westpac had a culture that did not prioritise compliance. “The Financial Services Royal Commission gave prominence to many of these issues across the banking industry and saw law reforms introduced to prevent harm, but Westpac’s misconduct, including the charging of advice fees to deceased customers, continued. “Consumer harm caused by systems failures is unacceptable,” Court said.  “Financial institutions must invest in systems that allow them to meet their obligations to customers. ASIC expects the industry to do this work quickly and efficiently. Consumers are entitled to be confident that the compliance systems of the financial services firms they trust with their financial security are up to standard.”