Westpac fundies cop $3m penalty over fees for no service
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The Federal Court has imposed civil penalties totalling $3 million against two Westpac investment businesses, for charging fees for no service and making misleading statements.
BT Funds Management and Asgard Capital Management have each received a $1.5 million fine and have been ordered to publish an adverse publicity order detailing their misconduct and court outcomes on their websites.
The court found that between September 2014 and August 2017, a total of 404 customers were harmed by BT and Asgard’s conduct.
On at least 487 occasions, BT and Asgard were found to have contravened the
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Jul 26, 2021 â 12.24pm
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Westpacâs superannuation subsidiaries BT Funds Management and Asgard Capital Management have been fined a total of $3 million over a fee-for-no-service breach that was probed during the banking royal commission.
Westpac self-reported the matter to ASIC in 2017 and remediated affected customers.Â
Jessica Hromas
The Australian Securities and Investments Commission said on Monday that BT and Asgard would pay $1.5 million each for charging customers while providing no service and for making âmisleadingâ statements.
ASIC sued the companies in the Federal Court in August and Justice Michael Wheelahan has ordered the duo to publish adverse statements on their websites after finding the group dudded 404 customers.
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BT Funds Management and Asgard Capital have been ordered by the Federal Court to pay $1.5 million each ($3 million) for charging fees-for-no-service and making misleading statements.
An Australian Securities and Investments Commission (ASIC) announcement said the court found that between September 2014 and August 2017, a total of 404 customers were harmed by BT’s and Asgard’s conduct.
The court held that on at least 487 occasions, BT and Asgard had contravened the
ASIC Act, and the
Corporations Act, by:
Making false or misleading representations to customers in customer account statements that no deductions of ongoing adviser fees were being made from customers’ accounts after those customers requested to remove their financial advisers from their accounts; and
BT and Asgard hit with $3 million penalty by Federal Court
BT and Asgard hit with $3 million penalty by Federal Court
The Federal Court has issued BT and Asgard penalties of $1.5 million each for charging fees for no service and making misleading statements.
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ASIC confirmed on Monday that 404 customers were affected by the wealth giants’ conduct between September 2014 and August 2017.
The Court found that during that time both companies:
Made false or misleading representations to customers in customer account statements that no deductions of ongoing adviser fees were being made from customers’ accounts after those customers requested to remove their financial advisers from their accounts.