Macquarie Bank Faces $14 Million Penalty Over Misleading Rates
Macquarie Bank faces a $14 million civil penalty after admitting it misled customers regarding a welcome interest rate for savings accounts.
The Australian Securities and Investments Commission has brought proceedings against Macquarie Bank for misleading the promotion of a welcome interest rate for new savings account customers between December 2021 and September 2022. The regulator alleges the bank marketed the rate as a bonus, leading customers to believe it was paid in addition to the standard variable rate, when it actually replaced the standard rate for four months.
Macquarie Bank admitted to breaching the Corporations Act and failing its obligation to provide financial services efficiently, honestly, and fairly. The bank has already paid $8.8 million in remediation to nearly 40,000 customers and stated it will not contest the proceedings. A proposed $14 million civil penalty is currently awaiting approval by the NSW Supreme Court.
ASIC Commissioner Alan Kirkland stated that the bank's systems and controls were not rigorous enough to identify the risk of customer misunderstanding. Ben Perham, head of banking and financial services at Macquarie Bank, apologized for the confusion, noting that while the actions were not deliberate, the bank should have better explained how the rate was applied.
