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.
SUBSCRIBE TO THE IFA DAILY BULLETIN
22 Jan 2018Hub24 announces platform enhancementsBy Staff Reporter
22 Jan 2018FPA responds to FPEC criticismBy Aleks Vickovich
19 Jan 2018AFA to host international adviser group AGMBy Staff Reporter
19 Jan 2018ASIC warns licensees over death nominationsBy Staff Reporter
18 Jan 2018ABA awaits government action on advice reformsBy Killian Plastow
18 Jan 2018SMSF sector grows 26% in 5 yearsBy Staff Reporter
- view all