This is ASIC’s first short-sale reporting case. The financial regulator alleges the misleading conduct was due to multiple systems-related issues, many of which remained undetected for over a decade.
“[Macquarie’s] repeated systemic failure to detect and resolve these issues indicated serious neglect of its systems and disregard for operational controls and technological governance,” it claims.
ASIC chair Joe Longo: “We’ve been raising these issues with Macquarie since 2015.”Credit: Justin McManus
Treasurer Jim Chalmers said he supported the latest action by ASIC in making sure everybody was “playing by the rules” in the economy.
ASIC declined to say what penalties could apply, but under Section 1317G of the Corporations Act, a maximum penalty of $782.5 million could be imposed.
Wednesday’s announcement marks the fourth regulatory action ASIC has taken against Macquarie Group in just over 12 months.
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Last week, the regulator slammed Macquarie for “multiple and significant” compliance failures, forcing the financial giant to appoint an independent expert to review its futures dealing business and over-the-counter derivatives trade reporting.
That move came after ASIC’s markets disciplinary panel fined Macquarie a record $4.9 million for failing to prevent suspicious orders being placed on the electricity futures market in September 2024.
Macquarie reported $3.7 billion in full-year profits on Friday, and revealed that chief executive Shemara Wikramanayake’s pay for the full year dropped to $24 million, from $25.3 million the previous year.
Macquarie said it reported the latest matter to ASIC in late 2022 when the issue came to its attention, and was now reviewing ASIC’s claim, but as the matter is before the court, it would be inappropriate to make further comment.
“Macquarie takes its compliance obligations very seriously and continues to invest in programs to further improve systems and controls across the group,” a spokesperson said.
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