Australia’s Macquarie Investment Management has decided to refund money to its wealth management clients affected by system errors occurred between 2001 and 2014.
The investment manager, which has been working with the capital markets regulator Australian Securities & Investments Commission, will pay over $5.5m to around 2,300 clients, who paid higher fees than disclosed in product offering documents as Macquarie failed to apply sufficient tax credits to the GST portion of their fees, due to system errors.
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Macquarie will commence compensation (including all interest due) to clients from 17 June 2015 and will contact clients who exited affected products over 12 months ago to discuss refund arrangements.
Deloitte will act as an independent third party consultant to assess the controls and processes around Macquarie’s remediation and compensation arrangements.
ASIC commissioner Greg Tanzer said: "We welcome the reporting of large system errors to ASIC. Where errors do occur, entities must identify and appropriately rectify them as soon as possible.
"ASIC will work with entities who report issues to us to ensure consumers are compensated in a timely, effective way."
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By GlobalData
