In December 2017, Westpac self-reported to the Financial Markets Authority (FMA) and the Commerce Commission (Commission) that it may have breached the Financial Markets Conduct Act 2013 (FMCA) and the Fair Trading Act 1986 (FTA) by incorrectly discounting fees in connection with certain banking packages.
Then in December 2018, Westpac alerted the FMA and Commission that it had identified further similarly affected customers.
The obligations potentially breached arise from fair dealing requirements under the FMCA, and FTA. Westpac is working to resolve and refund all incorrectly charged amounts.
Westpac has entered into Enforceable Undertakings with the FMA and the Commission compelling it, amongst other things, to:
- Refund all incorrectly charged amounts; and
- Explain to each impacted customer the reasons for the refund.
The FMA sees Westpac’s self-reporting and the eventual Enforceable Undertakings as an example of the regulatory requirements working as intended.