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This Week in Penalties…29 November – 3 December

Friday 3 December 2021
The Administrative  Appeals Tribunal  has shortened Lisa Lee’s ban from providing financial from providing financial services for eight years to six years.
The former ANZ employee failed  to act honestly:

  • The employee falsely witnessed binding nomination of beneficiary forms for seventeen clients,
  • backdated documents, and
  • falsified a client’s signature on documents.
 


 
Former Cap Coast Telecoms director Richard Ludwig has  been slapped with a five-year prison sentence for removing company assets to ‘prevent creditor access’ between October 2014 and January 2015.

 


 
Westpac is facing six civil penalties from the securities regulator:

  • fees for no service for deceased customers
  • Unauthorised duplicate general insurance polices
  • Issues around insurance in super
  • Lack of proper fee disclosure
  • Lack of  appropriate processes for deregistering company accounts
  • Sold customer debt with incorrect interest rates
Australian Securities and Investments Commission Deputy Chair Sarah Court said in  an official statement this week, “A common aspect across these matters has been poor systems, poor processes and poor governance, which is suggestive of an overall poor compliance culture within Westpac at the relevant time. Customers are entitled to have trust and confidence in Westpac being able to deliver what it promises, without suffering financial harm. Westpac must urgently improve its systems and culture to ensure these systemic failures do not continue.”




La Trobe Financial Asset Management will have to pay $75 , 000 in penalties for false and misleading marketing for leaving investors with the impression there could be no loss of capital for investing in the fund.

Australian Securities and Investments Commission (ASIC) Deputy Chair Karen Chester said in an official statement this week, “When consumers are considering investments, they need to be provided with accurate information that doesn’t mislead them. ASIC was concerned that these investment products were being sold as stable and more liquid when they were not, and essential detail was being left in the fine print.”