Australian Securities and Investments Commission v Westpac Banking Corporation [2019] FCA 2147

FEDERAL COURT OF AUSTRALIA

Australian Securities and Investments Commission v Westpac Banking Corporation [2019] FCA 2147 File number: NSD 1030 of 2018

Judge: WIGNEY J

Date of judgment: 19 December 2019

Catchwords: CORPORATIONS – financial advice – obligation to act in the best interests of the client – where a representative of Westpac Banking Corporation gave deficient and defective advice to clients and failed to act in the best interests of those clients – where representative contravened ss 961B, 961G, 961H and 961J of the Corporations Act 2001 (Cth) – where Westpac Banking Corporation contravened s 961K and s 912A of the Corporations Act 2001 (Cth) – obligation of financial services licensee to take reasonable steps to ensure that its representatives comply with best interests obligations – where contraventions admitted – where dispute as to number of civil penalty contraventions – where dispute as to the knowledge of Westpac Banking Corporation concerning risk that representative would not comply with the best interests obligations – appropriate form of declarations – level of detail required in declarations – consideration of appropriate civil penalty to be awarded – consideration of course of conduct and totality principles

Legislation: Corporations Act 2001 (Cth) ss 761A, 761G, 761GA, 763A, 764A, 764A(1)(d), 764A(1)(g), 766A, 766B(1), 766B(3), 769B(3), 910A, 910A(a), 912A, 912A(1), 912A(1)(a), 912A(1)(c), 912B(1), 912C, 913B, 916A, 960, 961, 961(1), 961(2), 961B, 961B(1), 961B(2), 961C, 961D, 961E, 961G, 961H, 961H(1), 961H(2), 961H(3), 961J, 961J(1), 961K, 961K(1), 961K(2), 961P, 1317E, 1317E(1), 1317E(2), 1317G(1E), 1317G(1E)(b), 1317G(1F), Ch 7, Pt 7.1 Div 3, Pt 7.1 Div 4, Part 7.6, Pt 7.7A Div 2 Evidence Act 1995 (Cth) ss 140, 191 Federal Court of Australia Act 1976 (Cth) s 21 Insurance Contracts Act 1984 (Cth) s 29(3)