ASIC takes action against Macquarie Bank for 'significant' compliance failuresBy business reporter Stephanie Chalmers and business editor Michael JandaTopic:Business and Industry Regulation3h ago3 hours agoTue 6 May 2025 at 11:18pmMacquarie Group has been criticised by ASIC for "recurrent" failures. (AAP)In short:The corporate regulator ASIC is requiring Macquarie to prepare a plan and hire an independent expert to repair deficiencies in its futures and derivatives trading departments.ASIC says more than 375,000 derivatives transactions were misreported.What's next?The independent expert will need to assess whether Macquarie's actions to fix these reporting deficiencies are sufficient.abc.net.au/news/asic-macquarie-bank-licence-conditions-compliance-failure/105262220Link copiedShareShare articleMacquarie Bank has been hit with additional licence conditions after being slammed by the corporate regulator for "multiple and significant compliance failures".The Australian Securities and Investments Commission (ASIC) has taken action against the investment bank by imposing additional conditions on its financial services licence.ASIC said the failures related to Macquarie's futures dealing and derivatives trading divisions, noting some went undetected for many years — in one case, for a decade.ASIC identified nine market conduct matters of concern in the past 18 months, with seven matters related to misreporting of more than 375,000 over-the-counter (OTC) derivative transactions, and two futures dealing matters related to the prevention and detection of suspicious trading activity and the withholding of orders on the ASX24 market.OTC derivatives are financial contracts traded directly between two counterparties rather than via an exchange, such as the ASX."Our intervention underscores our concern with the recurrent nature of Macquarie's failures, which were caused by ineffective supervision and weak compliance and control management," ASIC commissioner Simone Constant said.The incidents include the repeated failure to prevent a number of suspicious orders on the electricity futures market."We were particularly disappointed that Macquarie failed to prevent 11 suspicious orders being placed on the electricity futures market via Macquarie terminals shortly after ASIC had referred similar failures to the Markets Disciplinary Panel which fined the bank just under $5 million," Ms Constant added.What are the extra conditions on Macquarie's licence?The additional licence conditions ASIC imposed on the bank will require Macquarie to:Prepare a remediation plan to address the failures in its futures dealing business and OTC derivatives trade reporting functions and their root causes;Appoint an independent expert to review and report on the adequacy of Macquarie's remediation plan to address the failures and their root causes; andHave the independent expert assess the operational effectiveness of Macquarie's remediation activities to prevent, detect and respond to similar issues occurring in the future."Misreporting of OTC derivative transactions can undermine market transparency and hinders ASIC's ability to monitor potential risks in Australia's financial system," Ms Constant explained."These licence conditions are necessary to give ASIC confidence the remediation will be effective and drive sustainable change."Macquarie released a statement this morning responding to ASIC's action."MBL [Macquarie Bank Limited] takes its role as a licensed entity extremely seriously, including the importance of ensuring the integrity of the markets in which it operates and learning from instances where compliance has been inadequate," the bank said."In addition to working constructively with ASIC on these remediation activities, MBL continues to invest in a broader range of existing programs to strengthen its systems, controls and supervisory arrangements."ASIC has acknowledged Macquarie's cooperation throughout the process and its consent to the licence conditions."Posted 3h ago3 hours agoTue 6 May 2025 at 11:18pm, updated 56m ago56 minutes agoWed 7 May 2025 at 1:34amShare optionsCopy linkFacebookX (formerly Twitter)Top StoriesPakistan's prime minister vows India's attacks will 'not go unpunished'LIVEPhoto shows A man rides his motorbike through rubble in the darkCourt orders release of 'vicious' CCTV footage after three-year legal battleTopic:CrimePhoto shows External images of Reiby Youth Detention Centre.A feedback loop tanked Dutton's campaign in its final weekAAnalysis by Annabel CrabbPhoto shows Clive Palmer NPCNationals leader backs in nuclear as Liberal senator demands it be scrappedLIVEPhoto shows Liberal Party launch in SydneyDaughters of mushroom lunch guests give evidence to murder trialLIVEPhoto shows A digital drawing of Erin Patterson wearing a pink shirtPopular nowKaren Webb to step down as NSW police commissionerBREAKINGPhoto shows NSW Police Commissioner Karen Webb and AFP Commissioner Reece Kershaw give press conference to media.Daughters of mushroom lunch guests give evidence to murder trialLIVEPhoto shows A digital drawing of Erin Patterson wearing a pink shirtEight dead after India strikes nine sites in Pakistan, officials sayLIVEPhoto shows A man rides his motorbike through rubble in the darkRelated topicsAustraliaBankingBusiness and Industry RegulationCompany NewsTop StoriesPakistan's prime minister vows India's attacks will 'not go unpunished'Topic:Unrest, Conflict and WarPhoto shows A man rides his motorbike through rubble in the darkCourt orders release of 'vicious' CCTV footage after three-year legal battleTopic:CrimeA feedback loop tanked Dutton's campaign in its final weekAAnalysis by Annabel CrabbNationals leader backs in nuclear as Liberal senator demands it be scrappedTopic:ElectionsDaughters of mushroom lunch guests give evidence to murder trialTopic:Law, Crime and JusticeJust InFather who fatally shook baby has 10 years added to jail timeTopic:Courts17m ago17 minutes agoWed 7 May 2025 at 2:13amLiberal leadership race narrows to two likely contenders, Ley and Taylor, as MPs split over nuclearTopic:Liberal Party of Australia21m ago21 minutes agoWed 7 May 2025 at 2:09amKaren Webb to step down as NSW police commissionerBREAKING1m ago1 minutes agoWed 7 May 2025 at 2:29amBean counting continues as independent Jessie Price eyes a 'not-so-safe' Labor seatTopic:Australian Federal Elections15m ago15 minutes agoWed 7 May 2025 at 2:14amMore Just InBack to top