Commonwealth Bank-owned retail brokerage CommSec has entered into an enforceable undertaking with ASIC after weaknesses were found with its money-handling procedures.
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.
The ifa Excellence Awards are back in 2021 and nominations are now open! This prestigious accolade recognises exceptional professionals within the financial advice industry, shining a light on the outstanding achievements from the nation's best and brightest. If this sounds like you or someone you know, then nominate today for the ifa Excellence Awards 2021!
The latest ASIC estimated industry funding levy proves that the current formula is “not equitable or sustainable” according to FPA. ...
An industry body says it is in favour of a change in government as the Coalition have “unfairly targeted” financial advisers. ...
The corporate regulator's cost recovery implementation statement for the 2021 financial year indicates the costs allocated by ASIC to the advice secto...
Get notifications in real time and stay up to date with content that matters to you.
