The Australian Securities and Investments Commission (ASIC) has initiated legal proceedings against Westpac, alleging “systemic” failures within its RAMS franchise network. The corporate regulator asserts that Westpac failed to adequately supervise its franchisees, leading to instances of document forgery in the pursuit of loan approvals. ASIC contends this represents a major governance failure on the part of the lender. The lawsuit highlights ongoing scrutiny of lending practices within the financial sector and the responsibilities of institutions in overseeing their affiliated networks.
Westpac’s alleged failure to adequately supervise franchisees resulted in a failure to prevent franchisees from forging documents to secure loan approvals. The action from ASIC underscores the regulator’s commitment to holding financial institutions accountable for ensuring responsible lending practices and robust oversight of their networks. The outcome of the case could set a precedent for the level of supervision expected from lenders regarding their franchisees and affiliated parties.
