BT Funds Management, part of the Westpac Group, has been ordered to pay a A$20m (£11.3m, $15m, €13.6m) penalty by the Australian federal court.
The fine relates to the firm incorrectly charging commission payments to members of one of its superannuation funds for years.
The court found that BT charged insurance premiums which included commission until 2020; even though the practice has been banned since 2013.
Members of the Asgard Independence Plan Division Two fund who had chosen to not have financial advice, were also charged commission as part of their premiums which was then paid to financial advisers, the Australian Securities & Investments Commission (Asic) said.
Over 9,900 Asgard fund members were incorrectly charged commission totalling more than A$9m.
Penalties
Sarah Court, Asic deputy chair, said: “This conduct was caused by the failure to implement proper systems to ensure consumers are correctly charged.”
This is just one of six civil penalty procedures brought against Westpac by the Australian regulator in November 2021, as sentencing is pending for the other five.
Court added: “As the court finalises these matters against Westpac, we urge Westpac, and other financial institutions, to look at their culture of compliance and invest in systems that mean incorrect charging of fees, premiums and commissions does not occur.”
Westpac added that it will pay A$9.8m in redress to over 9,900 clients by July 2022.
