Westpac loses High Court appeal over super sales campaign

The High Court on Wednesday unanimously rejected the lender’s appeal, with the Federal Court to determine a fine for the banking giant.

ASIC said the outcome would give the industry clarity on the difference between providing personal advice and more general advice that does not take into account a customer’s circumstances.

“Westpac were actively conducting a sales campaign aimed at rolling customers into Westpac products under the banner of general advice,” ASIC commissioner Danielle Press said.

The judgment from Chief Justice Susan Kiefel and Justices Virginia Bell, Stephen Gageler and Patrick Keane said the calls made by Westpac staff were presented to super fund members as helpful “courtesy calls”. Fund members could have expected the bank had taken members’ objectives into account in recommending the service, they said.

“This service was presented as an obvious and uncontroversial course of action for each particular member in respect of his or her BT account, having regard to the member’s objectives discussed during the call,” the judgment said.

Westpac said the matter was a test case brought by ASIC, adding that the bank took its obligations to customers seriously. “It was an important process for the financial services industry to provide clarity on the distinction between the provision of ‘personal and ‘general’ advice when speaking with our customers,” a bank spokeswoman said.