Macquarie completes $24m compensation scheme

Macquarie completes $24m compensation scheme

Macquarie Equities Limited has now paid out $24.7 million to 263 clients, wrapping up a remediation program that was set up in 2014 as a result of poor financial advice, ASIC has said. 

The corporate regulator announced in January 2013 that it had accepted an enforceable undertaking from Macquarie Equities Limited (MEL) after a surveillance found recurring advice compliance deficiencies.

As part of the EU, MEL established a remediation scheme in 2014. MEL was to send more than 160,000 letters to former and current clients, inviting them to raise concerns about the quality of their advice, an ASIC statement said.

The EU has also led to changes in MEL’s management team and internal standards. Further, the undertaking has required MEL to improve induction processes for new advisers, improve adviser training, strengthen record keeping requirements and ensure a stronger compliance presence in the business through improved review processes and consequence management, ASIC said.

In a statement yesterday, ASIC said this program is now “substantially complete”.

“Since the remediation program was established in 2014, MEL has paid approximately $24.7 million of compensation (including interest) to 263 clients,” ASIC said.

“A small number of cases have not been finalised – typically because they are the subject of litigation or a current FOS complaint.

“ASIC acknowledges the co-operation and responsiveness of MEL during the remediation program.”

Macquarie completes $24m compensation scheme
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