Australian Securities and Investments Commission (ASIC) has imposed additional conditions on Macquarie Bank’s Australian financial services licence after finding that it misused client money for ten years.
The breaches include failing to deposit monies into a designated client trust account as well as making withdrawals that were not permitted from such an account.
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ASIC said the move follows an investigation by it into a series of breach reports lodged by Macquarie relating to breaches of the client money provisions of the Corporations Act, between March 2004 to 2014.
Macquarie has appealed against the conditions, which require it to engage an ASIC-approved expert to review and report on the adequacy of the bank’s procedures for handling client money.
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."
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