Macquarie remediation process 'flawed'
Macquarie Group's remediation process for financial planning clients, announced on Friday, has been criticised for providing insufficient detail of the process and not offering clients appropriate legal representation.ASIC announced on Friday that Macquarie Equities Ltd would write to 160,000 current and former clients about possible remediation for flawed financial advice provided by Macquarie Private Wealth.ASIC surveillance of Macquarie Private Wealth identified concerns about the company's compliance processes and risk framework. The surveillance resulted in Macquarie giving ASIC an enforceable undertaking in January last year.The undertaking requires Macquarie to identify advisers with poor compliance. Where it identifies a client affected by an adviser's failure it must remediate the client.The remediation process will be subject to independent scrutiny by Deloitte.The head of Maurice Blackburn's financial disputes department, John Berrill, said there was no detail about what information would be given to clients.Berrill said: "The scheme only allows for legal representation after Macquarie has made its review decision. As the Senate committee inquiry into ASIC found, representation is needed at the start of the process to safeguard clients' interests."The undertaking has also required Macquarie to improve its induction process for new advisers, improve training, strengthen record keeping and improve compliance reviews.