Australia’s Westpac Bank set to pay $87 million back to customers

One of Australia’s big four banks is set to cough up $87 million to return to customers

Tens of thousands of Aussies are set to receive a combined total of $87 million as Westpac begins remediation action over failing to notify its customers of crucial investing opportunities between 2005 and 2019.

The bank estimates it will pay the multi-million dollar compensation amount to impacted customers who are former clients of Westpac’s advice businesses and those that held ASX-listed securities through platforms.

ASIC said the corporate actions covered a range of activities by publicly listed companies, including buy-backs, share purchase plans and takeovers.

ASIC stated that Westpac’s failure to notify customers of corporate actions means customers may have missed on potential investment opportunities.

Westpac said it hopes to have remediated all the customers by the end of 2021, though ASIC noted it will be complicated because each breach was different and the bank will need to determine the value of each opportunity lost.

Customers will also be informed of missed corporate actions where Westpac has determined that they won’t be receiving compensation.