A Senate inquiry has recommended Macquarie Bank’s financial planning arm be placed under ”intensive surveillance” by the corporate regulator.
The inquiry has also recommended a Royal Commission to investigate a series of frauds, forgeries and alleged cover-ups at Commonwealth Bank’s financial planning arms, which saw the bank compensating investors for their losses.
While the inquiry was focused on CBA, it has also recommended special attention be given to Macquarie, because it entered into an enforceable undertaking with ASIC last year, for issues it failed to report to the regulator.
The Senate inquiry reported this lack of disclosure could signal there are further mishaps at Macquarie Private Wealth the regulator is not aware of. It also recommended changes at ASIC to ensure it was able to regulate the market.
While a Royal Commission has been recommended, the Finance Minister Mathias Cormann said he is still considering the findings, and said ASIC also needed to step up.
“ASIC of course has come out and has acknowledged they got some of these things wrong, and they’ve certainly got to lift their game,” he told The ABC.
There’s more here.
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