Macquarie Equities will today begin writing more than 160,000 letters to current and former clients about possible remediation for flawed financial advice it may have provided, as corporate regulator ASIC continues its investigations into the bank’s financial planning unit.
The letters invite clients to raise any concerns they may have over the quality of financial advice they have received.
The move is part of a remediation process brought about by the watchdog’s enforceable undertaking which was imposed on Macquarie Private Wealth in January 2013 as a result of surveillance of the equity arm’s financial advisor network. The undertaking is expected to run until January 2015.
Surveillance identified concerns over MPW’s compliance and risk processes. Macquaire is required to identify advisers with poor compliance and if a client has been impacted by an adviser’s failure they could be eligible for compensation.
ASIC also has ongoing investigations into a number of former Macquarie financial advisers.
“This remediation process will allow clients who believe they have been given poor advice to raise their concerns with Macquarie Equities. Clients who have suffered financial loss due to bad advice must be properly compensated,” ASIC deputy chairman Peter Kell said.
He said the undertaking has already resulted in changes to Macquarie Equity team’s management and internal protocols.
“The undertaking has required MEL to improve induction processes for new advisers, improve adviser training, strengthen record keeping requirements, and ensure a stronger compliance presence in the business through improved review processes and consequence management,” Kell said.
Letters will be sent to all people who have been clients since Macquarie Equities obtained its Australian Financial Services licence in March 2004.
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