ASIC hits Macquarie with AFSL conditions

The corporate regulator has imposed additional licence conditions on Macquarie Bank's AFSL after conducting an investigation into a series of breach reports.

In a statement, ASIC said the breach reports lodged by Macquarie related to breaches of client money provisions of the Corporations Act, between March 2004 and 2014.

The breaches reported raised issues, including failing to deposit monies into a designated client trust account and making withdrawals that were not permitted from such an account.

The additional conditions require Macquarie to engage an expert, approved by ASIC, to review, assess and report on the adequacy of Macquarie's procedures for ensuring compliance with the client money requirements of the Corporations Act and make recommendations for improvements, the statement said.

ASIC commissioner John Price said: "ASIC expects licensees to maintain strict controls and follow proper procedures in their handling of client funds.

"Where that does not occur, ASIC will take action to ensure a licensee's ability to continue operating is contingent on its compliance with these requirements."

Macquarie has filed an application for review of the decision before the Administrative Appeals Tribunal, and has also sought a stay of the decision pending the outcome of the review.

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0 #2 adrian 2016-03-12 17:11
Sounds like an ''enforceable undertaking'' is needed.

Kind regards,

Adrian Totolos.
Business Analyst.
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0 #1 Concerned investor 2016-03-11 14:09
Fellow professionals and investors must ask how serious Macquarie are about addressing their culture and processes. Management are either not capable or not interested in addressing these critical aspects of their business let alone their professional pride. One wonders if they are fit to hold a licence.
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