News: WBC UPDATE 1-Australia's Westpac fined for failing to report data on time

(Adds background on regulator)

Aug 8 (Reuters) - Australia's financial watchdog fined Westpac Banking Corp (WBC) and two of its units on Thursday for failing to report data to the watchdog on time, weeks after a government report called on the regulator to take tougher action on misconduct.

The Australian Prudential Regulation Authority said Westpac and its units will have to pay a fine of A$1.5 million ($1.02 million) because they were up to 28 days late in submitting their reports for the month ended April 30. The fine is the maximum payable for the breach.

"APRA wants to send a strong message to industry that compliance with our reporting standards is mandatory, and cannot be considered secondary to other business priorities," APRA Deputy Chair John Lonsdale said in a statement.

An independent government report last month told the regulator to be more forceful, and added that the body may need more resources to help it.

APRA's move highlights the scrutiny regulators have come under recently to take a larger and more proactive role in cleaning up the country's financial sector after widespread wrongdoing was found by a year-long inquiry.

Westpac representatives were not immediately available for comment. ($1 = 1.4769 Australian dollars)