
Most read
‘Optimistic borrowers’ could endanger housing market, RBA says...
‘Optimistic borrowers’ could endanger housing market, RBA says...

Latest Podcast
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...
Home values up 30% (or are they); NFTs taking the world by storm, and why Keatin...

Resources
There is $17.5 billion in lost and unclaimed super across ...
There is $17.5 billion in lost and unclaimed super across ...
Invest
How much is the wagyu and shiraz case costing taxpayers?
ASIC has disclosed the preliminary legal bill for its responsible lending case against Westpac.

How much is the wagyu and shiraz case costing taxpayers?
ASIC has disclosed the preliminary legal bill for its responsible lending case against Westpac.

The case centred on Westpac’s use of an automatic process to approve hundreds of thousands of home loans, substituting would-be borrowers’ actual living expediter for a relatively low benchmark, the Household Expenditure Measure.
In his judgment last year, Justice Perram found that a customer’s current living expenses weren’t an important indicator of whether they could afford the loan, contending expenses could be cut if necessary.
The Australian Securities and Investments Commission (ASIC) has revealed that its proceedings against Westpac Group for alleged breaches of responsible lending have cost taxpayers at least $1.83 million.
The costs include expenses from a pre-litigation investigation of Westpac’s conduct, as well as charges associated with proceedings in the Federal Court and the regulator’s appeal to the Full Federal Court.
However, the costs exclude Westpac’s litigation expenses, which the court ordered ASIC to pay after its appeal was dismissed.
ASIC stated that Westpac is yet to disclose its expenses to the corporate regulator.
The litigation costs were revealed in a response to a question on notice from Liberal senator and chair of the parliamentary joint committee on corporations and financial services, James Paterson, from a public hearing held last month.
The public hearing was held prior to ASIC’s decision to accept the Full Federal Court’s judgement, which the regulator had considered appealing to the High Court.
Senator Paterson had questioned whether a move to take the matter to the High Court would be counterintuitive.
“As we’ve discussed in this case previously, it’s ASIC’s aspiration to have clarity in the law and that’s what you said the appeal could provide,” he said.
“Obviously, that clarity could also be provided by ASIC accepting the court’s ruling of what the law is.
“Now that you’ve appealed once and been unsuccessful, is it really wise for ASIC to create further uncertainty with another appeal?”
The regulator has since announced that in light of the Full Federal Court’s decision, it would review its updated regulatory guidance and consider the implications of the Federal Court’s decision on compliance practices.
ASIC issued its new guidance in December 2019, after holding two rounds of public consultation with industry stakeholders.
The principles-based guidance was designed to provide lenders with greater clarity and flexibility amid uncertainty off the back of scrutiny from the banking royal commission.
However, ASIC has stressed that prospective reforms of the National Consumer Credit Protection Act to further clarify the enforcement of responsible lending obligations is “ultimately a matter for the federal government and Parliament”.
About the author

About the author


Shares
Aussie investors flock to social media to learn about trading
Aussie investors are increasingly turning to social media platforms for education on trading, as collaboration and reliance on a community become integral in the way traders learn. ...Read more

Shares
GameStop looks to cash in on surge by selling 3.5m shares
The GameStop saga continues as the retailer moves to capitalise on its newfound fame by offering up for sale 3.5 million of its shares. ...Read more

Shares
Expert warns against media-led stock frenzies as GameStop shares plummet to 7-week low
An expert has urged “extreme caution” when joining social media-led stock frenzies, after GameStop shares were rocked by its less than favourable financial results. ...Read more

Shares
GameStop fails to meet revenue estimates, shares seesaw
GameStop has failed to capitalise on the frenzy around the stock, missing its Q4 estimates, although it reported strong sales in early Q1. ...Read more

Shares
Why CBA’s BNPL launch won’t be the end of Afterpay
The big four bank’s arrival into the buy now, pay later sector is unlikely to have an impact on the established players, with the bank focusing on supply instead of consumer demand, an industry expe...Read more

Shares
How investors can practically incorporate more ESG into their portfolios
Six-year-olds and healthy food can be like mixing water with oil – they don’t really like to party together, and it can be a constant source of frustration. That said, the difference is that you h...Read more

Shares
How will PayPal’s arrival impact BNPL investors?
US payment giant PayPal has announced that it will bring its ‘Pay in 4’ option to the Australian market by June, but is unlikely to impact the BNPL players as much as investors would expect, an in...Read more

Shares
Elon Musk loses $35bn as shares tumble
Tesla CEO Elon Musk has seen a dramatic wealth reversal, with his personal fortunes falling by US$27 billion ($35 billion) as Wall Street continues its EV and technology-based stock sell-off. ...Read more

Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now

Raging floods, the tech stock bubble and the ongoing SG debate
Listen now

Meet the Manager with Trilogy’s Philip Ryan: RBA rates and property price growth
Listen now

The continued property boom, ethical investing and engaging with your super fund
Listen now

Shares
Aussie investors flock to social media to learn about trading
Aussie investors are increasingly turning to social media platforms for education on trading, as collaboration and reliance on a community become integral in the way traders learn. ...Read more

Shares
GameStop looks to cash in on surge by selling 3.5m shares
The GameStop saga continues as the retailer moves to capitalise on its newfound fame by offering up for sale 3.5 million of its shares. ...Read more

Shares
Expert warns against media-led stock frenzies as GameStop shares plummet to 7-week low
An expert has urged “extreme caution” when joining social media-led stock frenzies, after GameStop shares were rocked by its less than favourable financial results. ...Read more

Shares
GameStop fails to meet revenue estimates, shares seesaw
GameStop has failed to capitalise on the frenzy around the stock, missing its Q4 estimates, although it reported strong sales in early Q1. ...Read more

Shares
Why CBA’s BNPL launch won’t be the end of Afterpay
The big four bank’s arrival into the buy now, pay later sector is unlikely to have an impact on the established players, with the bank focusing on supply instead of consumer demand, an industry expe...Read more

Shares
How investors can practically incorporate more ESG into their portfolios
Six-year-olds and healthy food can be like mixing water with oil – they don’t really like to party together, and it can be a constant source of frustration. That said, the difference is that you h...Read more

Shares
How will PayPal’s arrival impact BNPL investors?
US payment giant PayPal has announced that it will bring its ‘Pay in 4’ option to the Australian market by June, but is unlikely to impact the BNPL players as much as investors would expect, an in...Read more

Shares
Elon Musk loses $35bn as shares tumble
Tesla CEO Elon Musk has seen a dramatic wealth reversal, with his personal fortunes falling by US$27 billion ($35 billion) as Wall Street continues its EV and technology-based stock sell-off. ...Read more