In a statement issued yesterday, the corporate regulator announced it had accepted an EU offer from CBA entities CommSec and the Australian Investment Exchange.
Under the terms of the agreement, the two CBA Group entities must appoint an independent expert to review their client money-handling procedures and put processes in place to rectify deficiencies.
The EU follows “weaknesses” identified by ASIC regarding the money-handling arrangements of the two companies.
“Those weaknesses related to withdrawing client money from trust accounts without the required written authorisations and failing to separate client money from CommSec’s and Ausiex’s money,” said an ASIC statement.
“ASIC considers it appropriate to seek the view of an independent expert to evaluate the controls and processes of CommSec and [Australian Investment Exchange] in relation to the handling of client money.”
The statement emphasises the need for AFSL holders to “keep client money separate from their own” in order to safeguard retail investors.
Both CommSec – Australia’s largest retail brokerage – and the Australian Investment Exchange (Ausiex) completed a remediation program in late 2012.
What I want to ask is anyone really surprised?
It seems a matter of minutes before another CBA business is being dragged through the mud. When will this mob ever learn their lesson? Once your reputation is gone..its gone CBA!
Well ‘Lasts’ I lament the fact my dealer group that was once non-banked own is now dragged through the mud due to bank ownership. Hopefully my personal reputation isn’t being sullied by now operating under a bank owned AFSL.
Surprise surprise, more dodgy dealings at CBA. As an IFA and longstanding supporter of Colonial First State I loathe the fact that such a good brand is now dragged through the mud due to bank ownership. A lament no doubt shared with others who can recall a time when financial planning suppliers were not ‘bank owned’…Navigator???