Powered by MOMENTUM MEDIA
subscribe to our newsletter
Macquarie to refund over 2,000 clients

Macquarie to refund over 2,000 clients

Macquarie will pay more than $5.5 million to reimburse users of one of its investment products after self-reporting system errors to ASIC.

ASIC announced yesterday that around 2,300 users of the Macquarie Wrap investment platform will be eligible for a refund after sustaining losses due to “system errors” occurring between 2001 and 2014.

The system errors included failing to apply sufficient tax credits to the GST portion of client fees, and charging administration fees that exceeded the maximum disclosed in the product offering documents.

Advertisement
Advertisement

Macquarie appointed Deloitte after "discussion with ASIC" in order to ensure that "all affected clients are identified and appropriately compensated and Macquarie's controls and processes are adequate to prevent a similar error occurring in future", ASIC said.

Speaking to Mortgage Business, a Macquarie spokesperson emphasised the investigation commenced after the bank self-reported to errors to the authorities.

“Macquarie identified an error affecting approximately one per cent of Open Wrap accounts and a similar number of closed accounts which it self-reported to ASIC,” the spokesperson said.

“The matter has been reviewed thoroughly and Macquarie is now working with accounting firm Deloitte which has assessed our process for reimbursing funds, including interest, to affected clients and has been engaged to review our amended controls.

“We are working with these clients to reimburse funds.”

Macquarie to refund over 2,000 clients
mortgagebusiness

 

Latest News

APRA’s proposal to loosen serviceability measures could reignite the credit boom, Moody’s has said, amid growing expectations that the m...

The median time on market for a residential dwelling has almost doubled, reflecting subdued demand for housing amid falling property prices,...

NAB and Westpac are among the 56 banks to endorse the United Nations’ Principles for Responsible Banking that will be launched in Septembe...

FROM THE WEB
podcast

LATEST PODCAST: How the mortgage sector will be impacted by the federal election

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.