A view of the Westpac bank headquarters in Sydney.
Camera IconA view of the Westpac bank headquarters in Sydney. Credit: Supplied/AFP via Getty Images

Westpac gets $9m penalty over poor advice

AAPEastern Reporter

WESTPAC has been ordered to pay more than $9 million in penalties in relation to poor financial advice provided by one of the bank’s former financial planners.

The bank has already paid about $12 million in compensation to clients of Sudhir Sinha who were affected by his failure to comply with the “best interest obligations” when he provided them with advice concerning financial products.

The Australian Securities & Investments Commission (ASIC) took legal action against Westpac in the Federal Court, contending the bank was liable for Mr Sinha’s failure to act in the best interests of his clients.

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He was an employee of Westpac in Perth from 2001 to 2014.

In the Federal Court on Thursday, Justice Michael Wigney assessed the appropriate civil penalties for Westpac’s contraventions at $9,150,000.

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