APRA commenced its investigation in 2019 to examine prudential concerns arising from allegations that Westpac had breached anti-money laundering and counter-terrorism laws. Having “carefully considered” the result of ASIC’s investigation – to which it had delegated certain enforcement powers – APRA has closed its investigation.
Westpac remains subject to a court enforceable undertaking, while the $1 billion operational risk capital add-on, reflecting the bank’s “heightened operational risk profile”, will remain in place until Westpac completes its remediation.
“Although the investigation has not found evidence of breaches of the Banking Act or the BEAR, APRA remains determined to ensure Westpac rectifies its risk governance weaknesses effectively and sustainably,” said APRA deputy chair John Lonsdale.
“Under the enforceable undertaking, Westpac has clearly defined executive and board accountabilities for the implementation of its integrated risk governance remediation plan. APRA will be holding Westpac to account for the delivery of the required improvements.”
Maybe ASIC and APRA also needs to rectify risk governance weaknesses effectively and sustainably. The industry should be holding them to account for the delivery of better outcomes.
So, ““Although the investigation has not found evidence of breaches of the Banking Act or the BEAR, APRA remains determined to ensure Westpac rectifies its risk governance weaknesses effectively and sustainably,”?
Sounds to me like another regulator justifying its position and error of adjustment. What else is new with APRA and ASIC though? They constantly talk about and point their fingers at the financial services sector saying it’s conflicted yet here we have two bodies whose very existence relies solely on finding (or creating) fault – yet neither of them will accept their own enormous shortcomings, conflict of interest and errors with the enormous negative impact they have both had the profitability and health of the very industry they both regulate.
In case you haven’t noticed ASIC and APRA, the industry is on its knees and is dying. Advisers are leaving in massive numbers with many still yet to leave. Those that still remain are suffering enormous mental health issues. The life insurance industry is down $30 BILLION in revenue last year, insurance companies are struggling to maintain prices with many of them succumbing to premium increases for both stepped and level premiums of between 15% and 62%. How is that even possible when 5-10 years ago, that would NEVER have happened. That’s APRA’s and ASIC interference.
Never accountable, totally conflicted by their ideologies and own internal culture failures. Yeah sure…financial advisers and the banks are the problem here!
So there’s no evidence of wrongdoing, but they’re still treated as being guilty?
There is overwhelming evidence but no more action needed to be taken. Perfectly reasonable.