Westpac charged with breaching Deposit Compensation Scheme disclosure requirements

Westpac has been charged with breaching the Depositor Compensation Scheme (DCS) disclosure requirements under the Deposit Takers Act 2023.

The Reserve Bank (RBNZ) alleges Westpac’s Custodian PIE product was missing from its DCS webpage for about 109 days between December 5, 2025, and March 24, 2026.

A Westpac spokesperson said it self-reported an error on its website to the RBNZ in which it did not include a savings product covered under the DCS.

“This product was only directly available to two investment managers, and there was no financial loss to customers.

“We have fixed the underlying issue to prevent the same error occurring again. We have co-operated and will continue to co-operate with the RBNZ.”

The alleged breach did not affect customers’ DCS protection or the operation or availability of the scheme.

Westpac has added the product back to its webpage.

RBNZ’s director of enforcement and resolution, Kerry Beaumont, said, “Depositors need to know whether their money is protected by the DCS. Deposit takers must provide complete, accurate and up-to-date information that is easy to find.

“We take non-compliance with these core requirements seriously and will take enforcement action where appropriate.”

Beaumont said the infringement process allowed it to respond to lower-level non-compliance in a way that matched the seriousness.

“We consider each case individually, including what the deposit taker has done to fix the problem and how it has co-operated with us.”

The District Court will decide whether the offence is proven and what fine, if any, to impose.