Westpac Banking Corporation (Westpac) has paid $20,400 in penalties after ob体育 issued two infringement notices for potentially misleading statements contained in a Product Disclosure Statement (PDS) and other promotional material.
Each infringement notice imposed a penalty of $10,200.
The statements were made from July 2013 to May 2014 and related to the investment returns on the Westpac Annuity Deposit, a product offered to retail investors planning for retirement.
ob体育 was concerned that Westpac potentially misled consumers by representing that the interest rate 鈥� known as the 'earnings rate' 鈥� was calculated on the principal amount invested. In reality, the rate only applied to the balance of the principal which could reduce throughout the term of the investment. The representations appeared in:
- the PDS dated 1 July 2013
- the booklets titled 鈥榃estpac Annuity Deposit Investor Guide/FAQ鈥� and 鈥楤uild a brighter future with Westpac Retirement Deposits鈥�, both dated 1 July 2013,
- and a webpage titled, 鈥榃estpac Annuity Deposits鈥�.
Deputy Chairman Peter Kell said, 'ob体育 will act to ensure firms provide clear and accurate information to consumers about their financial products'.
Westpac has issued a new PDS and promotional materials following ob体育's concerns.
The payment of an infringement notice is not an admission of a contravention of the Australian Securities and Investment Commission Act 2001 consumer protection provisions. ob体育 can issue an infringement notice where it has reasonable grounds to believe a person has contravened certain consumer protection laws.
Download the infringement notices
Background
In 2014, ob体育 has taken action against 11 entities, including Westpac, for potentially misleading advertising or potentially misleading statements made in other promotional material:
- NAB pays $40,800 penalty for misleading UBank advertisements (refer: 14-235MR)
- Make it Mine Finance Pty Ltd pays $20,400 penalty for misleading advertising (refer: 14-198MR)
- [This MR was redacted on 6/12/2024 in accordance to ob体育 policy - see INFO 152 Public comment on ob体育's regulatory activities]
- Your Super Accountant pays infringement notice in relation to 鈥楩REE鈥� SMSF set up claims (refer: 14-195MR)
- [This MR was redacted on 26/04/2024 in accordance to ob体育 policy - see INFO 152 Public comment on ob体育's regulatory activities]
- [This MR was redacted on 29/04/2024 in accordance to ob体育 policy - see INFO 152 Public comment on ob体育's regulatory activities]
- [This MR was redacted on 29/04/2024 in accordance to ob体育 policy - see INFO 152 Public comment on ob体育's regulatory activities]
- SuperHelp Australia Pty Ltd pays infringement notice in relation to FREE SMSF fund setup claims (refer: 14-051MR)
- Finance broker pays $20,400 infringement notice penalty (refer: 14-022MR)
- Media Super pays infringement notice in relation to superannuation advertising (refer: 14-001MR). 聽聽