Latest news with #MargotGatland
1News
02-05-2025
- Business
- 1News
Westpac fined $3.25m for past misleading, overcharging customers
One of the country's largest banks has been ordered to pay a penalty of $3.25 million for misleading and overcharging customers. Westpac admitted the breaches in a case brought against it by the Financial Markets Authority (FMA) at the Auckland High Court in December last year. The historical breaches resulted in $6.35 million of overcharging and impacted more than 24,500 customers, including: Customers entitled to various benefits under Westpac's Employee, Gold and Platinum (EGP) packages failed to receive the advertised discounts. The packages were offered between February, 2004 and November, 2021. Personal and business banking customers failed to receive benefits under one of Westpac's other advertised packaged arrangements. Association packages were offered from at least January, 2012 until July, 2022. Westpac failed to honour agreed pricing for business customers who held a Business Transact Account. This occured between June 2011 and October 2021 when it failed to provide the correct pay-as-you-go pricing for some Business Transact Account customers. FMA head of enforcement Margot Gatland said the issues stemmed from deficiencies in Westpac's systems which meant the bank failed to deliver contractually agreed discounts to customers. "Westpac used preferential pricing to attract and retain customers, without having systems that could reliably deliver on those promises." The FMA acknowledged Westpac's full cooperation throughout the investigation, Gatland said. "The relationship between financial institutions and their customers must be one of trust. Customers should rightfully expect to be treated fairly and that agreements between the two parties will be honoured." Justice Geoffrey Venning issued a 35% discount at sentencing, noting that the bank had self-identified the issues, self-reported to the FMA and cooperated fully with its investigation. "I accept Westpac's submission there is no suggestion that its conduct was deliberate or wilfully misleading, nor that there was any intention to intentionally deprive customers of benefits. But Venning added: "While it had in place systems, the systems were insufficient." A Westpac spokesperson said all impacted customers had been compensated and the packages were no longer offered. "Westpac co-operated fully with the FMA's investigation and we are pleased to have resolved the matter."
Otago Daily Times
02-05-2025
- Business
- Otago Daily Times
Bank fined $3.25m after misleading, overcharging customers
Photo: ODT files High Court orders Westpac NZ to pay $3.25m over historic breaches The bank admitted the breaches and reported itself to the Financial Markets Authority Westpac is New Zealand's fourth-biggest bank by total assets One of the country's biggest banks has been ordered to pay a multimillion-dollar penalty for misleading and overcharging customers. The High Court has fined Westpac New Zealand $3.25 million for misleading customers entitled to advertised discounts, and for overcharging some business customers. The historic breaches resulted in $6.35 million in overcharges and affect nearly 25,000 customers. Westpac admitted the breaches in a civil case brought against it by the Financial Markets Authority at the High Court in Auckland in December last year. The FMA said customers entitled to various benefits under its Employee, Gold and Platinum (EGP) packages failed to receive the advertised discounts. The EGP packages were offered between February 2004 and November 2021. The FMA also said personal and business banking customers did not receive benefits under one of Westpac's other advertised packages, called Association Packages. The watchdog also said Westpac failed to honour agreed pricing for business customers who held Business Transact Accounts. As of December 31 last year, Reserve Bank data showed Westpac was New Zealand's fourth-largest bank by total assets. It made a profit of $1.05 billion for the year ended September. "Westpac's issues stemmed from deficiencies in its systems that meant the bank failed to deliver contractually agreed discounts to customers," FMA head of enforcement Margot Gatland said. Justice Geoffrey Venning issued a 35% discount to the penalty, noting the bank self-identified the issues and reported itself to the FMA, and fully cooperated with the investigation. "Westpac acknowledged responsibility for its failures from the outset and has been entirely open and cooperative with the FMA throughout the investigation, admitting liability at the earliest stage," the judge said. A Westpac spokesperson said all customers had been remediated and it no longer offered the packages. "Westpac co-operated fully with the FMA's investigation and we are pleased to have resolved the matter."
Otago Daily Times
02-05-2025
- Business
- Otago Daily Times
Westpac fined $3.25m over historic breaches
Photo: ODT files High Court orders Westpac NZ to pay $3.25m over historic breaches The bank admitted the breaches and reported itself to the Financial Markets Authority Westpac is New Zealand's fourth-biggest bank by total assets One of the country's biggest banks has been ordered to pay a multimillion-dollar penalty for misleading and overcharging customers. The High Court has fined Westpac New Zealand $3.25 million for misleading customers entitled to advertised discounts, and for overcharging some business customers. The historic breaches resulted in $6.35 million in overcharges and affect nearly 25,000 customers. Westpac admitted the breaches in a civil case brought against it by the Financial Markets Authority at the High Court in Auckland in December last year. The FMA said customers entitled to various benefits under its Employee, Gold and Platinum (EGP) packages failed to receive the advertised discounts. The EGP packages were offered between February 2004 and November 2021. The FMA also said personal and business banking customers did not receive benefits under one of Westpac's other advertised packages, called Association Packages. The watchdog also said Westpac failed to honour agreed pricing for business customers who held Business Transact Accounts. As of December 31 last year, Reserve Bank data showed Westpac was New Zealand's fourth-largest bank by total assets. It made a profit of $1.05 billion for the year ended September. "Westpac's issues stemmed from deficiencies in its systems that meant the bank failed to deliver contractually agreed discounts to customers," FMA head of enforcement Margot Gatland said. Justice Geoffrey Venning issued a 35% discount to the penalty, noting the bank self-identified the issues and reported itself to the FMA, and fully cooperated with the investigation. "Westpac acknowledged responsibility for its failures from the outset and has been entirely open and cooperative with the FMA throughout the investigation, admitting liability at the earliest stage," the judge said. A Westpac spokesperson said all customers had been remediated and it no longer offered the packages. "Westpac co-operated fully with the FMA's investigation and we are pleased to have resolved the matter."
RNZ News
02-05-2025
- Business
- RNZ News
Westpac bank fined $3.25 million over its historic breaches
Westpac is New Zealand's fourth-biggest bank by total assets. Photo: AFP One of the country's biggest banks has been ordered to pay a multi-million-dollar penalty for misleading and overcharging customers. The High Court has fined Westpac New Zealand $3.25 million for misleading customers entitled to advertised discounts, and for overcharging some business customers. The historic breaches resulted in $6.35 million in overcharges and affected nearly 25,000 customers . Westpac admitted the breaches in a civil case brought against it by the Financial Markets Authority at the High Court in Auckland, in December last year. The FMA said customers entitled to various benefits under its Employee, Gold and Platinum (EGP) packages failed to receive the advertised discounts. The EGP packages were offered between February 2004 and November 2021. The FMA also said personal and business banking customers did not receive benefits under one of Westpac's other advertised packages, called Association Packages. And finally, the FMA said Westpac failed to honour agreed pricing for business customers who held Business Transact Accounts. As of 31 December 2024, Reserve Bank data showed Westpac was New Zealand's fourth-largest bank by total assets. It made a profit of $1.05 billion for the year ended September. "Westpac's issues stemmed from deficiencies in its systems that meant the bank failed to deliver contractually agreed discounts to customers," FMA head of enforcement Margot Gatland said. Justice Geoffrey Venning issued a 35 percent discount to the penalty, noting Westpac self-identified the issues and reported itself to the FMA, and fully cooperated with the investigation. "Westpac acknowledged responsibility for its failures from the outset and has been entirely open and cooperative with the FMA throughout the investigation, admitting liability at the earliest stage," Justice Venning said. A Westpac spokesperson said all customers had been remediated and it no longer offered the packages. "Westpac co-operated fully with the FMA's investigation and we are pleased to have resolved the matter," the bank said. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
01-05-2025
- Business
- Scoop
Experienced Investor Found Liable For Market Manipulation
Press Release – Financial Markets Authority FMA Head of Enforcement, Margot Gatland said, Mr Chengs orders lacked a genuine commercial purpose and were instead made for the purposes of increasing the price and/or demand for RUA shares at a time when he held a material shareholding in the … Kok Ding Cheng, an experienced investor, has been ordered to pay the Crown a pecuniary penalty of $198,000, following a civil proceeding brought by the Financial Markets Authority (FMA) – Te Mana Tatai Hokohoko for market manipulation. The FMA's case centred on five small orders for of NZX-listed shares of Rua Bioscience Limited (RUA) that Mr Cheng made over a 10-day period during late 2020 via a broking account he held with ASB Securities. The Court found in making each of those five orders, which ranged from $59 to $540, Mr Cheng breached s265 of the Financial Markets Conduct Act 2013 which prohibits trade-based market manipulation. The Court found that Mr Cheng deliberately placed the orders for the purpose of increasing the price and/or demand for Rua shares. Mr Cheng did not file a statement of defence during the proceeding, and so the proceeding progressed by way of formal proof hearing. FMA Head of Enforcement, Margot Gatland said, 'Mr Cheng's orders lacked a genuine commercial purpose and were instead made for the purposes of increasing the price and/or demand for RUA shares at a time when he held a material shareholding in the company. 'Market manipulation undermines confidence in financial markets because it means investors can't trust prices or market activity to be genuine. We take cases of market manipulation seriously to ensure New Zealand's markets reflect genuine supply and demand, in order to preserve their integrity and reputation. 'We considered Mr Cheng's conduct warranted a firm response to deter market manipulation. This case and the Judge's ruling are important reminders that trade-based market manipulation can occur when trading through online share brokerage accounts. Investors should be careful to understand their obligations when trading online, as trading listed shares for disingenuous reasons can result in liability.' The $198,000 is to be paid to the Crown after it is first applied to the FMA's actual costs in taking the case.
