The additional licence conditions imposed on Macquarie Bank’s AFSL, which were initially met with resistance by the group, have been removed by ASIC.
In a statement, the corporate regulator said it removed the licence conditions following a report from KPMG.
Macquarie had engaged KPMG to test the effectiveness of the application of Macquarie’s Client Money Framework in Australia over a six-month period that ended on 31 March 2016.
As a result of the report, ASIC withdrew its conditions and Macquarie discontinued its proceedings in the Administrative Appeals Tribunal.
In March 2016, ASIC said it hit Macquarie with extra conditions after conducting an investigation into a series of breach reports.
The breach reports lodged by Macquarie related to breaches of client money provisions of the Corporations Act, between March 2004 and 2014, which 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 had required Macquarie to engage an expert (KPMG) 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.
Shortly after the announcement, Macquarie said it would apply to the AAT to have the decision reviewed. The bank claimed that ASIC’s conditions were “duplicative” of work the company had already done.
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