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This edition of the
Update covers:
Recent legal and regulatory developments, including the release of APRA s policy and supervision priorities for 2021, the launch of APRA s Cyber Security Strategy 2020 – 2024, Australian regulatory support for the ISDA IBOR Fallbacks Protocol and Supplement, and Australia s renewed focus on sanctions;
Two recent Federal Court decisions which support ASIC s position on obligations to comply with ASIC notices and to substantiate any claims for legal professional privilege;
The continuing fallout of the Financial Services Royal Commission and the recent cases which demonstrate that ASIC and APRA appear to remain committed to taking enforcement action in relation to matters referred by the Commissioner;
Date Time
ASIC successful against Westpac subsidiaries’ appeal to High Court
The High Court has today confirmed that Westpac Bank subsidiaries, Westpac Securities Administration Limited (WSAL) and BT Funds Management Limited (BTFM), breached financial services laws, including the requirement to act in their clients’ best interests and the requirement to act honestly, efficiently and fairly.
The unanimous High Court judgment today upheld the Full Federal Court decision regarding the conduct of WSAL and BTFM, dismissing their appeal and holding that they breached the Corporations Act by providing personal financial product advice in calls made to 14 customers. Neither company was licensed to provide personal financial advice.
Decision provides ‘clear guidance’ on selling products ‘through direct approaches to retail clients’
The Australian high court has upheld the full federal court decision that Westpac Bank subsidiaries, Westpac Securities Administration Limited (WSAL) and BT Funds Management Limited (BTFM), breached financial services laws.
This includes the “requirement to act in their clients’ best interests and the requirement to act honestly, efficiently and fairly”, the Australian Securities and Investments Commission (Asic) said.
The high court dismissed the bank’s appeal that it breached the Asic Corporations Act by providing personal financial product advice with calls made to 14 customers.
Neither company had a licence to provide personal financial advice.