Westpac (ASX:WBC) agrees to pay $113m in fines

Westpac (ASX:WBC) has reached agreement with Australia’s corporate watchdog to resolve six civil penalty proceedings filed against them, submitting to the court that combined penalties of $113 million to Westpac is appropriate.

The matters follow investigations conducted by Australian Securities and Investment Commission (ASIC). The banking giant has admitted the allegations in each of the proceedings and agreed to pay $80 million in compensation to thousands of customers.

The matters include the charging of advice related fees to deceased customers, incorrect interest rate information, incorrect using of duplicate insurance policies without consent, inadequate disclosure of adviser fees for certain super and investment products and superannuation products offered by BT Funds Management where customers were inadvertently charged additional advisor commission.

“In each of these matters, Westpac has fallen short of our standards and the standards our customers expect of us. The issues raised in these matters should not have occurred, and our processes, systems and monitoring should have been better,” said CEO Peter King.

“We are putting things right and unreservedly apologise to our customers.” 

Shares in Westpac (ASX:WBC) are trading 0.9 per cent higher at $21.11.