Westpac Case Study

22112A – Task 1 - Financial Market Sector 1. Have you selected a suitable financial market?
Please find below a personal example of our recent dealings with a finance and mortgage broker.
My partner and I have recently moved to Brisbane from Gladstone. We were fortunate enough to take advantage of the current economic climate of high house prices in Gladstone, and sell our Gladstone property. With opposite economic climates here in Brisbane with house prices quite low - we decided we could now purchase another property in Brisbane. This would not have been possible if the house prices were comparative, so this external force certainly impacted our decision to buy. I also returned to work from maternity leave providing us with more
Westpac is an Authorised Deposit-taking institution (“ADI”) with their own internal code of practice policy - Code of Accounting Practice and Financial Reporting www.westpac.com.au/docs/pdf/aw/ic/Code__accounting_practice_f1.pdf b. Westpac Group also have their own internal Code of Conduct http://www.westpac.com.au/docs/pdf/aw/Westpac_Group_Code_of_Conduct_August_2011.pdf
Westpac is one of the four major Australian lender banks with their own internal Code of Accounting Practice and Financial Reporting policy and their own Code of Conduct. Westpac officers are required to adhere to these policies in addition to the government regulations imposed on ADI’s.
There are a number of ADI’s who provide what is called a First Home Saver Account (“FHSA”), however Westpac has not yet been listed as an FHSA provider.
Case study example: A Westpac bank teller processes the transactions of their friend advising they have what is called a First Home Saver Account, and deposits their friend’s money into this account.
This particular Westpac bank teller has breached the code of accounting practice and the code of conduct. 1. Westpac Groups Code of Conduct, Principle 6 stating “We manage conflicts of interest responsibly ”;
Westpac should use what has happened here to contact employees and send out to each of them a copy of the codes, and perhaps suggest the supervisors/managers from each department meet with their teams to ensure they have properly understood what is required of them in the codes. The managers should then discuss implications if codes are not followed.
The bank teller has set up a FHSA for their friend, before Westpac have gone through APRA’s official processes to list Westpac as an FHSA provider.
Under section 123 of the First Home Saver Account Act 2008 (“FHSA Act”) An Authorised Deposit-taking Institutions and Life Companies must complete what is called a “Notification to APRA of intention to offer first home saver accounts form”. Once this form has been completed by the appropriate Westpac official and APRA has listed Westpac as an official FHSA provider – only then can this particular service be offered.
APRA is a regulator of the financial services industry, and is funded largely by the industry in supervisors. APRA sets out to protect the financial well-being of the Australian community by enforcing standards and practices to ensure as per their mission