The proposed conditions imposed on Macquarie Bank Limited’s Australian financial services licence (AFSL) by the corporate regulator following client money breaches are a repeat of work the bank has already done, the bank said in a statement.
Macquarie said it had identified and self-reported the incidents to ASIC during 2013 and 2014, and added the incidents had not resulted in loss to any client.
“Macquarie treats client money with the utmost seriousness and in self-reporting these incidents to ASIC, took a conservative and consultative approach. The incidents reported included errors in atypical situations, and all were addressed with improvements to processes and controls,” the bank said in a statement.
“Client money is a complex financial services regime, but at its core, requires financial institutions to keep clients’ money held in relation to certain financial services or products separate from an institution’s own accounts.”
While ASIC’s conditions included an independent consultant’s review of Macquarie’s framework used in handling client money and breach reporting procedures, Macquarie said it had already done this in 2013 when it appointed KPMG and put in place a new framework, which it said had seen improvements in client money handling controls.
Macquarie had filed an application to the Administrative Appeals Tribunal for a review of ASIC’s decision after an investigation into a series of breach reports lodged by Macquarie relating to client money provisions of the Corporations Act between March 2004 and 2014.
