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Big four bank prepares to remediate customers $87m
Tens of thousands Australians are set to receive a combined $87 million as a big four bank begins remediation action over failing to notify customers of investing opportunities between 2005 and 2019.
Big four bank prepares to remediate customers $87m
Tens of thousands Australians are set to receive a combined $87 million as a big four bank begins remediation action over failing to notify customers of investing opportunities between 2005 and 2019.
Westpac said it will remediate customers whose financial advisers may have failed to notify them of corporate actions between 2005 and 2019.
According to ASIC the corporate actions that may have failed to be communicated include buy backs, renounceable and non-renounceable rights issues, share purchase plans and takeovers.
“Westpac’s failure to notify customers of corporate actions means customers may have missed out on various opportunities,” a statement released by ASIC on Friday reads.
“These include purchasing additional shares often at a discount to the market price, the creation of temporary rights or options that can be sold for a profit, and the ability to sell shares and receive a benefit that can be tax advantageous depending on the shareholder’s circumstances.
“Westpac’s remediation covers an estimated 328,000 potential missed corporate action notifications impacting approximately 32,000 customer accounts. This is a complex remediation due to the various types of corporate actions involved.”
Westpac said it aims to compensate most of the affected customers by the end of the year.
“Compensating customers affected by misconduct is a very important part of licensees’ obligations to act fairly, honestly and efficiently. We are pleased to see that Westpac has taken action to remediate affected customers regardless of how much time has passed," ASIC commissioner Danielle Press said.
“We encourage affected customers to engage with the communications from Westpac to understand how they were impacted and to seek further information from Westpac if required.”
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