Macquarie Bank has admitted compliance failures in the promotion of a savings-account Welcome Rate, with it and the Australian Securities and Investments Commission jointly proposing a A$14 million penalty.
ASIC’s Supreme Court of New South Wales proceeding concerns descriptions of the offer as a “welcome variable rate” or a “bonus”. The regulator says those descriptions could suggest the rate was added to the standard variable rate. It generally applied instead of the standard rate during the four-month promotional period.
Macquarie admitted it failed to take necessary steps to make its statements clear and unlikely to confuse new customers. It also admitted that its advertising framework, internal guidance and response to complaints were insufficient. The admissions concern duties under sections 912A(1)(a) and 912A(5A) of the Corporations Act.
The proposed resolution is not yet final. The Court must decide whether the agreed penalty and orders are appropriate. Macquarie has separately paid A$8.8 million in remediation to nearly 40,000 customers.
