Macquarie to compensate customers over advice scandal

Macquarie to compensate customers over advice scandal

Photo: ASIC found Macquarie clients were given poor levels of advice while many of its advisers kept poor records.

Macquarie Group is today offering compensation to former and current clients who lost money through flawed financial advice given by its employees.

The watchdog found Macquarie clients were given poor levels of advice while many of its advisers kept poor records.

The enforceable undertaking requires Macquarie to identify which employees were giving bad advice and offer remediation, including compensation, to the affected clients.

Under an agreement with the Australian Securities and Investments Commission (ASIC), Macquarie is now contacting former and current clients of its private wealth division who may have lost money due to bad advice.

ASIC deputy chairman Peter Kell says Macquarie is issuing 160,000 letters to clients who received advice as far back as 2004.

“We wanted to make sure that there was adequate understanding of who was adversely affected, were there particular financial advisers where the clients needed to be given greater priority and results in relation to remediation and that has occurred,” Mr Kell said.

Read more here: ABC

    

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