High Court of Australia Denies Westpac's Appeal over Proceedings Brought by ASIC

​The Australian Securities and Investment Commission (ASIC) has unveiled the decision by the High Court regarding Westpac's appeal in relation to proceedings against the bank's subsidiaries, Westpac Securities Administration Limited (WSAL) and BT Funds Management Limited (BTFM), brought by ASIC for potential violations of financial services laws.

The High Court upheld the Full Federal Court's decision regarding the conduct of WSAL and BTFM, dismissing their appeal and confirming unanimously that the respondents breached the Corporations Act, including the requirement to act in clients' best interests and the requirement to act honestly, efficiently and fairly, by providing personal financial product advice in calls made to 14 customers. Neither company was licensed to provide personal financial advice.

The case arose from two telephone campaigns by WSAL and BTFM which recommended that customers transferred their other superannuation funds to a Westpac-related superannuation account. Due to the campaigns, Westpac increased its funds under management by almost $650 million between 1 January 2013 and 16 September 2016. On 28 October 2019, ASIC won the first appeal in the Full Federal Court against the Westpac companies.

The judgment of the High Court, which confirms the Full Federal Court's decision, identifies the difference between general and personal advice for consumers and financial services providers. 

The case will now return to the Federal Court for a hearing on relief on a date to be advised. At that hearing, among other things, the Australian watchdog will secure orders for pecuniary penalties with respect to WSAL and BTFM's conduct.