Westpac aimed to compensate most of the affected customers by the end of 2021.
Customers would also be informed of missed corporate action notifications where Westpac has determined that no compensation is payable.
Corporate actions cover a range of activities by publicly listed companies, which included buy backs, renounceable and non-renounceable rights issues, share purchase plans and takeovers.
The Australian Securities and Investments Commission (ASIC) said Westpac’s failure to notify customers of corporate actions meant customers could have missed out on various opportunities.
“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,” ASIC said.
ASIC: Westpac To Remediate Customers For Failure To Pass On Important Corporate Action Information Date
02/07/2021
Westpac has committed to remediating customers whose financial advisers may have failed to notify them of corporate actions between 2005 and 2019. Westpac estimates approximately $87m will be paid in compensation to affected customers who are former clients of Westpac’s advice businesses and held ASX-listed securities through platforms.
Corporate actions cover a range of activities by publicly listed companies, including 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. 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