APRA slaps Westpac hit with $1.5m late fee

APRA has slapped Westpac with a $1.5m fine over its alleged failure to meet reporting requirements.

A Westpac Bank branch in Melbourne. Picture: AAP

The bank regulator has slapped Westpac with a $1.5 million fine, along with subsidiaries St George Finance and Capital Finance Australia, for repeatedly filing key reporting documents past their due date.

The Australian Prudential Regulation Authority said it was imposing the maximum penalty for failing to meet legal obligations after Westpac (WBC) was 20 days late in filing its March reports, while St George and Capital Finance missed the same deadline by 37 days.

Further, APRA said the subsidiaries were also up to 28 days late in its April monthly report and all three were between 9 and 28 days late in filing their March quarter reports.

APRA served the bank with a show cause notice in July, and after assessing Westpac’s response today proceeded with the issuance of infringement notices.

“Access to accurate and timely data is critical for APRA to monitor effectively the safety and stability of the banking, insurance and superannuation sectors,” APRA deputy chair John Lonsdale said in a statement.

“By issuing these infringement notices, APRA wants to send a strong message to industry that compliance with our reporting standards is mandatory, and cannot be considered secondary to other business priorities.”

He noted the regulator’s reporting standards were legally binding in the same way as its prudential standards.

Westpac has until September 6 to pay the fine.

This latest punishment from the regulator comes as chairman Wayne Byres conceded mistakes in supervising the sector, but said self-regulation was required to restore community trust.

“While after-the-event punishment will act as a general deterrent against illegal behaviour, more than just compliance with the law is needed to restore the financial sector’s reputation,” Mr Byres told the Banking and Finance Oath Summit.

“Individuals, companies and industries must better regulate their own behaviour, to do not only what is legal, but also have regard to what is right.”