SYDNEY (Reuters) - Australia's corporate regulator said on Monday it had appealed a test case it lost against Westpac Banking Corp over the lender's treatment of customers during a drive to boost its pension funds.
The move comes as business and banking regulators are under heavy pressure to file suits - and win them - against big banks after a public inquiry excoriated the financial sector for widespread misdeeds and badly treating its customers.
Regulators were particularly criticised for allowing that to happen on their watch and for being reluctant to sue, prompting a tougher stance from watchdogs in the sector.
Australia's Federal Court found last year that Westpac and its funds management division had failed to treat customers honestly when it asked them to shift their superannuation savings into the lender's accounts.
But it rejected an argument by the Australian Securities and Investments Commission (ASIC) that sales staff at the lender and its subsidiaries had offered "personal advice" to clients during the 2014 promotional drive and so breached licence conditions.
"The dividing line between personal and general advice is one of the most important provisions within the financial services laws," ASIC Deputy Chair Daniel Crennan said in a statement.
"It directly impacts the standard of advice received by consumers. 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," he said.
Court documents show the appeal was filed on Feb. 13 and that Westpac has not yet filed a response.
Westpac had no immediate comment when contacted by Reuters.
(Reporting by Tom Westbrook; Editing by Peter Cooney and Sandra Maler)
