Why Westpac (ASX:WBC) shares could be under pressure today

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Summary

  • Corporate watchdog ASIC (Australian Securities and Investments Commission) has commenced civil proceedings against Westpac over sale of consumer credit insurance (CCI) products to nearly 384 customers.
  • The proceedings relate to allegations that Westpac supplied CCI to certain customers who had not requested or agreed to acquire this product.
  • Westpac said that it was carefully considering these claims and was committed to working constructively with ASIC through the Court process.

Westpac Banking Corporation (ASX:WBC) on Thursday announced that the Australian Securities and Investments Commission (ASIC) had launched civil proceedings against the bank in relation to the sale of consumer credit insurance (CCI) products to nearly 384 customers. The proceedings relate to allegations that Westpac supplied CCI to certain customers who had not requested or agreed to acquire this product.

Source: © Sunflowerey   | Megapixl.com

Corporate watchdog ASIC is seeking, among other things, declarations of contraventions of certain civil penalty provisions and unspecified monetary penalties relating to the period from 7 April 2015 to 28 July 2015. Westpac said that it was carefully considering these claims and was committed to working constructively with the ASIC through the Court process. The bank has not sold CCI products since the year 2019.

Meanwhile, on Wednesday, 7 April 2021, Westpac confirmed that the Australian Prudential Regulation Authority (APRA) had approved its Integrated Plan that was developed in response to the Enforceable Undertaking.

Source: © Lucidwaters    | Megapixl.com

Under the terms of the Undertaking, Westpac was required to submit for APRA approval a detailed integrated plan that outlines all major remediation activities related to risk governance.

READ MORE: These 10 ASX dividend stars deserve your attention!

Stock performance

Shares of Westpac closed unchanged at A$24.84 on Wednesday, 7 April 2021, as against the previous closing on Tuesday, 6 April 2021. The stock has given a return of 26.5 per cent so far this year.

READ MORE: INR puts worst show in 20 months on fears of liquidity glut

 

 

 


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