ASIC has issued two infringement notices to Westpac for “potentially misleading statements” contained in the Westpac Annuity Deposit PDS and other promotional material.
“The statements were made from July 2013 to May 2014 and related to the investment returns on the Westpac Annuity Deposit, a product offered to retail investors planning for retirement,” ASIC said in a statement released yesterday.
“ASIC was concerned that Westpac potentially misled consumers by representing that the interest rate – known as the ‘earnings rate’ – was calculated on the principal amount invested,” said the statement.
“In reality, the rate only applied to the balance of the principal which could reduce throughout the term of the investment,” ASIC said.
The representations appeared in the PDS dated 1 July 2013; booklets entitled ‘Westpac Annuity Deposit Investor Guide/FAQ’ and ‘Build a brighter future with Westpac Retirement Deposits’, both dated 1 July 2013; and a webpage entitled ‘Westpac Annuity Deposits’.
Deputy chairman Peter Kell said, “ASIC will act to ensure firms provide clear and accurate information to consumers about their financial products.”
Westpac has issued a new PDS and promotional materials following ASIC’s concerns, said the statement.
What about the MANY thousands often senior investors that have been hurt big time by banks and institutions. Some of these older investors have even died. While the law has been compromised, ASIC has a responsibility for market integrity and CONSUMER PROTECTION, particularly the regulation of processes.
In the past ASIC have simply walked away from placing these financial rogues under investigation or even under scrutiny !
As it is there are very few planners and advisers violating and or using bad product. Among the thousands of independent licenced advisers they provide the bulk of the quality advice and planning. Why is it those practicing outside ASIC guidelines find the regulator less than interested and even powerless!
How is it fair to argue these banks and institutions are exempt from scrutiny! Any wrongful transgression is simply labelled as being outside the regulators jurisdiction. Justice denied.
So you say Westpac has been fined by ASIC for making misleading statements Wow!
If Peter Kell is really fair dinkum, perhaps ASIC will now act to ensure the likes of banks and institutions dont issue misleading statements! They have not been too serious about regulating in the past! Maybe now, thats a little too much to expect!
Remember it took nearly 16 months before the regulator was forced to act against serious flaws at Commonwealth Bank’s financial planning unit. It would seem ASIC is only interested in pursuing a claim for “potentially misleading statements” on a big fish and then only for small money!
“Westpac has copped a $20,400 fine from ASIC for making ‘misleading statements’ about the returns on its annuity deposits”
So how many 0.00000000000x% of the yearly sale ? ASIC ,what a waste of space toothless paper tiger !