FMA - Financial Markets Authority

High Court Fines ASB Bank NZD 2.1 Million (about USD 1,22 million) for Fair Dealing Breaches The High Court has fined ASB Bank Limited $2.1 million for fair dealing breaches involving insurance products and banking services, affecting over 25,000 customers. ASB admitted to making false or misleading representations, failing to apply multipolicy discounts, and not implementing fee exemptions for eligible FastNet Business customers. This led to refunds of approximately $4.7 million to affected customers. Justice OGorman highlighted the need for strong penalties to ensure financial institutions maintain adequate systems. Despite ASB's cooperation and self-reporting, the duration and severity of the issues necessitated a strong regulatory response.