In recent comments to the Australian Financial Review, Joe Longo, Chairman of the Australian Securities and Investments Commission (ASIC), criticized Macquarie Bank for a "reckless disregard for compliance standards" after it allowed suspicious transactions to continue despite repeated warnings from the regulator.
In 2022, Macquarie permitted three clients to place dozens of suspicious trades, resulting in $23.4 million in excess profits. These trades were not stopped due to a coding error in the bank's compliance system, SMARTS. An ASIC review found that Macquarie failed to implement an interim solution when notified about the issue and responded carelessly to the regulator's concerns. "The poor attitude and compliance culture on display in this issue is something the Macquarie board and executives need to reflect on and address," Longo said.
This content is available to paid Members of Starling Insights.
If you are a Member of Starling Insights, you can sign in below to access this item.
If you are not a member, please consider joining Starling Insights to support our work and get access to our entire platform. Enjoy hundreds of articles and related content from past editions of the Compendium, special video and print reports, as well as Starling's observations and comments on current issues in culture & conduct risk management.
Join The Discussion
Sign in and be the first to comment.