SYDNEY (Reuters) - Australia's securities regulator said on Friday it had filed a lawsuit against the country's second-biggest lender, Westpac Banking Corp, over alleged poor financial advice.
The Australian Securities and Investments Commission (ASIC) said it filed a Federal Court civil lawsuit alleging that a former Westpac financial planner breached the "best interests" duty under the Corporations Act, provided inappropriate financial advice and failed to prioritise the interests of clients.
In court documents made public by ASIC, the regulator said it was seeking fines, payment of its costs and declarations that the Sydney-based bank failed to do all things necessary to provide financial services "efficiently, honestly and fairly".
A Westpac spokesman was not immediately available for comment.
The lawsuit was the second for Westpac from ASIC this year. Last month, the bank was cleared by a court of accusations levelled by ASIC that it rigged a key rate to boost profit.
Australia's banks are under intense scrutiny as a year-long public inquiry into finance sector misconduct, now in its fifth month, airs almost daily allegations wrongdoing.
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The lawsuit brought by ASIC on Friday was not related to any testimony aired at the inquiry so far.
Westpac shares were not immediately affected by news of the fresh legal matter, trading up 1.8 percent in mid-afternoon, in line with the broader market.
(Reporting by Byron Kaye; Editing by Stephen Coates)
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