A High Court ruling that found two Westpac subsidiaries breached financial services laws when they went beyond their licence and provided personal advice is being examined by the National Insurance Brokers Association (NIBA).

The court found Westpac Securities Administration and BT Funds Management had provided personal financial product advice to 14 customers during telephone campaigns related to superannuation.

Australian Securities and Investments Commission (ASIC) Commissioner Danielle Press says the High Court has provided clarity on the differences between personal and general advice.

“Westpac were actively conducting a sales campaign aimed at rolling customers into Westpac products under the banner of general advice,” she said.

The judgment says the general advice warning was given once, at the start of the phone conversation, but super members were subsequently asked directly about their personal objectives.

Members could “reasonably have expected” that Westpac had taken those objectives into account in recommending the roll-over service and the advantages of a single Westpac account, the court said.

“Given that Westpac’s marketing was apt to create precisely that impression it can hardly complain that it succeeded,” the ruling says.

As a result of the campaigns, Westpac increased its funds under management by almost $650 million between January 1, 2013 and September 16, 2016.

NIBA CEO Dallas Booth says issues around distinctions between production information, general advice and personal advice also apply to general insurance brokers.

“We are in the process of getting an analysis of the judgment and the potential implications for brokers,” he told insuranceNEWS.com.au.