Macquarie Equities Ltd has given the corporate regulator an enforceable undertaking after ASIC found serious compliance failures in Macquarie Group’s retail stock division.
Macquarie Equities agreed to a review of its Macquarie Private Wealth business, including its licence risk and operating model and systems and its legal and regulatory obligations, the corporate regulator said this afternoon.
The Australian Securities and Investments Commission was concerned that the responsibility for compliance sat within the Macquarie Private Wealth business and Macquarie Equities has taken steps to integrate compliance within and reporting to the Macquarie Group-wide compliance function.
‘‘Our surveillance found Macquarie Private Wealth fell significantly short of this mark, so ASIC took action,’’ ASIC chairman Greg Medcraft said. ‘‘This is a major EU (enforceable undertaking) affecting one of the wealth industry’s biggest players, which we believe will rectify some serious compliance deficiencies.’’
It requires Macquarie Equities to develop and implement, with the oversight of an independent expert, a plan to rectify any licence risk management and compliance deficiencies.
Specifically, ASIC had found that Macquarie Equities had failed to address recurring compliance deficiencies that involved a significant number of its advisers.
These included instances of client files not containing statements of advice, advisers failing to demonstrate reasonable basis for advice provided to the client, poor client records and lack of detail contained in advice documents and failing to provide sufficient evidence that clients were sophisticated investors, ASIC said.
Macquarie Equities is a subsidiary of Macquarie Group and carries on a financial product advice business in Australia under the name Macquarie Private Wealth.
The original release of this article first appeared on the website of Hangzhou Night Net.