ASIC to restrict Macquarie Bank after client accounts breach

The Australian Securities and Investments Commission (ASIC) has imposed restrictions on Macquarie Bank's financial service licence after the bank was found to have mishandled client money over a 10-year period. Market sources have reacted strongly to this move arguing that such a decision by the ASIC should have been announced to the Australian Securities Exchange. Macquarie is appealing the decision.

Macquarie Bank is in trouble with the corporate watchdog again after it was found to have mishandled client money over a 10-year period.

The Australian Securities and Investments Commission has imposed conditions on Macquarie Bank's financial services licence over the breaches, including failing to deposit monies into a designated client trust account and for making withdrawals that were not permitted from such an account.

Macquarie found to have mishandled client funds for 10 years. Credit: Grant Turner

The action by ASIC follows a horror run for Australian banks in recent years that has included the recently launched investigation into the Commonwealth Bank's insurance arm CommInsure and ASIC's action against ANZ Bank over the alleged rigging of the bank bill swap rate.

It follows scandals in the financial planning arms of the Commonwealth Bank, Macquarie and National Australia Bank. Westpac is also being investigated over the alleged rigging of the BBSW.