Westpac unit RAMS fined A$20m for compliance failures

RAMS failed to supervise its reps to ensure compliance with credit law, amongst others.

RAMS Financial Group has been ordered to pay a A$20m penalty by Australia’s Federal Court for compliance failures in its home loans.

Between June 2019 and April 2023, RAMS is said to have breached its obligations as an Australian credit licensee and contravened laws by dealing with unlicensed referrers, according to a media release by the Australian Securities and Investment Commission (ASIC) published on 24 October 2025.

RAMS also failed to have adequate arrangements to ensure that customers were not disadvantaged by any conflict of interest, the court found.

RAMS is also said to have failed to supervise its representatives to ensure compliance with credit law, and failing to do “all things necessary to ensure that the credit activities authorised by the licence are engaged in efficiently, honestly, and fairly,” ASIC said.

It also reported instances of RAMS franchise staff submitting false pay slips from non-existent employees; and altering customers’ liabilities and expenses to ensure that loan applications were approved.

RAMS is a wholly owned subsidiary of Westpac Banking Corporation. It provided home loans targeting first home buyers and self-employed borrowers.

In April 2024, Westpac commenced a process of winding down the RAMS business. Its franchise network has been wound down as of August 2024.