Among these complaints made of BT's chief investment officer, Martyn Wild, was inappropriate contact and commentary which included telling a female staff member her appearance and weight would retard her career prospects.

The revelations would be a blow to Westpac chief executive Brian Hartzer who has been looking to fortify his gender equity credentials - which include setting 50 per cent female management targets.

The timing is particularly unfortunate for Westpac which is planning to announce the beefing up of its social corporate responsibility position through a stronger focus on BT's sustainable investing.

It follows from recent scandals of involving Seven West chief executive, Tim Worner's affair with staffer Amber Harrison and the QBE boss, John Neal 's failure to notify the board of a relationship with his executive assistant for which his pay was docked $550,000.

It is understood Westpac's most senior management became aware of serious allegations in the weeks leading up to Christmas and started a formal investigation in mid-January when the two complainants came back from leave.

In response to questions about the incidents a BT said in a statement, "BT Financial Group does not condone inappropriate or unlawful behaviour.

"We require all of our employees to comply with the policies outlined in our 'code of conduct' and to act responsibly and with integrity."

"When there are allegations we take them very seriously and they will be reviewed internally and where necessary by an external party."

Wild had been with the company only six months when the complaints were made - having formerly been with BT Investment Management - a company in which Westpac has a minority interest.

The investigation was apparently handed over to one of Australia's biggest law firms Clayton Utz who interviewed all the parties involved and a number of work based witnesses and has since delivered what has been described as a detailed report.

The report was not signed off by Wild's boss John Shuttleworth, suggesting he was not responsible for the findings.

It is believed the report backs several of the allegations but finds insufficient evidence to support some of the others. Insiders have suggested one of the women was taunted for being fat and about the colour of her hair. There are also suggestions that the unwanted physical contact involved hair stroking and placing his arms around shoulders plus inappropriate jokes.

Meanwhile Wild has been issued with a formal 'first and final warning' which will limit - if not extinguish - his financial bonus this year.

He has also been required to apologise to his 'team' but it's understood that neither woman was physically present and one was patched in via phone.

It has been said that the women did not receive financial compensation and still have their jobs but have taken leave. As the saga plays out, and if the women are not satisfied with the outcome they may seek compensation.

Attempts to engage in mediation have been unsuccessful to date as it appears the women have been reluctant to get involved. But the process is not yet complete.

Do you know more? Email Eknight@fairfaxmedia.com.au