ASIC is appealing last year’s landmark Federal Court decision, determined to prove two Westpac subsidiaries provided personal financial advice despite not being licensed to do so, via Financial Standard.
In December 2018, Justice Jacqueline Gleeson determined Westpac Securities Administration Limited (WSAL) and BT Funds Management (BTFM) had breached the Corporations Act in 2014, during two telephone campaigns in which staff recommended the rollover of superannuation accounts to Westpac/BT super products.
However, the judge said ASIC failed to prove the phone calls constituted personal financial advice. Under their respective AFSLs, WSAL and BTFM are only licensed to provide general advice.
ASIC has now filed an appeal of the decision, seeking greater clarity and certainty as to the difference between general and personal advice for consumers and financial services providers.
“The dividing line between personal and general advice is one of the most important provisions within the financial services laws. It directly impacts the standard of advice received by consumers,” ASIC deputy chair Daniel Crennan said.
“This is why ASIC brought this test case and ASIC believes further consideration by the full court of the Federal Court is necessary to better inform consumers and industry.”
The case concerned 15 phone calls which the judge determined to be general advice “because the callers did not consider one or more of the objectives, financial situation and needs of the customers to whom the advice was given.”
However, in 14 of the 15 calls, the law was breached by the implication that the rollover of super funds into a BT account was recommended. While not dishonest, the product advice was not provided efficiently, honestly and fairly, the judge deemed.
