ASIC circles Westpac in fresh insider trading allegations
By Reporter|06 May 2021
Just over a week after settling its Shine Lawyers class action and a month following the resignation of its group general counsel, the big four bank has been hit with another blow – this time from the corporate watchdog.
Earlier this week, ASIC confirmed it has commenced proceedings against Westpac for insider trading, unconscionable conduct and breaches of its AFSL obligations.
The allegations relate to Westpac’s role in executing a $12 billion interest rate swap transaction with a consortium of AustralianSuper and a group of IFM entities. The transaction occurred in 2016 and was associated with the privatisation of a majority stake in Ausgrid by the NSW government.
Westpac and Shine settle class action for $30m
Westpac and Shine settle class action for $30m Share
Banking giant Westpac and plaintiff firm Shine Lawyers have agreed to a multimillion-dollar settlement in the Westpac Life proceedings.
In late 2017, Shine Lawyers initiated proceedings on behalf of people who purchased insurance issued by Westpac Life, including superannuation funds, on the recommendation of financial advisers at Westpac, St.George Bank, Bank of Melbourne, BankSA or BT Advice.
It was alleged that – since at least February 2011 – customers had been charged higher premiums for life insurance policies than persons who obtained identical insurance issued by Westpac Life on the recommendation of independent financial advisers from the aforementioned institutions.
Major bank settles class action for $30m
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A big four bank has agreed to pay up to $30 million, without any admission of liability, to settle a class action relating to life insurance.
In 2017, class action specialists Shine Lawyers commenced a class action against Westpac Banking Corp (Westpac) alleging that the bank charged its customers more interest on life insurance policies than they would have been able to access from independent financial advisers.
According to the law firm, Westpac and its subsidiaries St.George, Bank of Melbourne, BankSA and BT customers were allegedly charged either 4.3 per cent and/or 9.09 per cent more for insurance policies taken out with Westpac Life Insurance Services Ltd between 2011 and 2017 than they would have been charged if they obtained the same insurance via independent advisers.
Stolen generations survivors launch class action against Commonwealth
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Indigenous Australians who were forcibly removed from their families in the Northern Territory by successive governments have filed a multimillion-dollar class action against the Commonwealth.
Law firm Shine Lawyers filed the class action in the NSW Supreme Court on Wednesday on behalf of a group of stolen generations survivors. They are seeking damages from the Commonwealth on the basis that it owed the children and members of their family a duty of care and engaged in unlawful or false imprisonment.