After defeating the corporate regulator’s case alleging it breached responsible lending laws, banking giant Westpac has won a reprieve from lodging a defence in a related class action.
Insurance company Allianz Australia will need set aside an extra $250 million in capital until it strengthens its risk management, making it the fifth financial institution to be slapped with additional requirements by the prudential regulator.
Westpac has defeated a responsible lending case brought by the Australian Securities and Investments Commission in relation to almost 262,000 home loans, with the Federal Court finding the corporate regulator misinterpreted the operation of national lending laws.
Westpac and two of its subsidiaries have been hit with a $1.5 million penalty by the Australian Prudential Regulation Authority for failing to meet their reporting obligations.
A judge has signed off on a confidential settlement resolving a class action brought by investors against Westpac over its role in an unregistered managed investment scheme run by now deceased financial advisor Tony Famularo.
Group members in a recently settled class action against Westpac unit BankSA over its conduct in connection with convicted Ponzi schemer Michael Samra are expected to get 40 per cent of the confidential settlement, a result a judge said wasn’t as bad as he might have feared.
The corporate watchdog has warned ārobustā enforcement action is on the cards for banks and lenders, after a review found consumer credit insurance policies to be “extremely poor value for money”, paying out as little as 11 cents per dollar spent in premiums on average.
While no means a flood, the class actions filed in response to the shocking evidence of misbehaviour at last year’s banking royal commission have been steadily flowing and show no signs of drying up. Here, we give you the round-up of cases launched so far, the latest developments in each, and what’s coming down the pipeline.
Banking giant Westpac has settled an investor class action brought by Levitt Robinson for its alleged role in an unregistered managed investment scheme.