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