The Federal Court has issued BT and Asgard penalties of $1.5 million each for charging fees for no service and making misleading statements.
ASIC confirmed on Monday that 404 customers were affected by the wealth giants’ conduct between September 2014 and August 2017.
The court found that during that time both companies:
The court also found Asgard breached “its obligation to do all things necessary to ensure the financial services covered by its financial services licence were provided efficiently, honestly and fairly”.
“Misleading statements were made to customers, who were also charged for services they did not receive,” ASIC deputy chair, Sarah Court, said.
“The licensed financial services industry has an obligation to ensure that their systems and processes are reliable, accurate and their customers must be able to have trust in them.”
Justice Wheelahan said in his decision: “Financial services providers in the position of the defendants should not be able to take the benefits which arise from automated and offshore processes and systems, which it may be inferred contribute to substantial profits, without also undertaking the burden of ensuring that those systems work, and that they promptly identify occasions where they do not.
“An appropriate penalty should have the effect of deterring the defendants, and financial services providers generally, from maintaining defective systems, and conversely, providing an incentive to establish and maintain systems that are reliable.”
Westpac has indicated that it will pay the penalties and costs against BT and Asgard.
Just a week after being accused of “corruption”, an energy super fund has had a shake-up in its senior positions. ...
Momentum Media has bolstered its wealth portfolio, unveiling an expanded content team and adding a consumer brand that delivers Australians essential ...
Financial advisers are taking an increasingly holistic approach to ESG screening, having recognised the benefits of operating positive and negative sc...