Investors demand action by Westpac

Investors and proxy advisers ramped up pressure on Westpac’s embattled board on Monday, demanding answers, and further ­action on compliance failings and accountability for 23 million alleged breaches of the law. Ethical Partners Funds Management investment director Nathan Parkin said more accountability was required at Westpac as large fines would result from the Austrac action. “In the midst of cash (Austrac penalty) going out the door of shareholders’ funds ... who says that’s OK, let’s just go on?” Mr Parkin said. “The bank needs to show someone is accountable for the large fine and penalties that are likely to occur,” he added, noting accountability had to occur at a “high level”. Ethical Partners owns Westpac stock, but moved underweight on the shares in May, after paring its stake on concerns the bank had been “too slow to act” on its capital position and cutting its dividend. It has further reduced its Westpac position on the back of the legal ­allegations.