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
- 24 May 2018Suncorp Advice enters deal with MidwinterBy Reporter
- 24 May 2018ANZ dealer group boss jumps ship to Aus UnityBy Reporter
- 24 May 2018Elder abuse may stem from additional SMSF membersBy Miranda Brownlee
- 23 May 2018Trail commissions ban would create ‘bigger conflict’, says licenseeBy Killian Plastow
- 23 May 2018‘Shut it down’: CPA members rail against troubled advice armBy Aleks Vickovich and Jotham Lian
- 23 May 2018Labor heavyweight concedes industry fund hypocrisyBy Aleks Vickovich and Jessica Yun
- view all