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Macquarie Client Review Process
On 13 August 2014, Macquarie wrote to around 160,000 current or former customers of Macquarie advising of a process by which a review of their file can be conducted (the Client Review Process). If you have received this letter, see sample here, you are eligible to have your file reviewed. If you believe that you lost money as a result of inappropriate financial advice or services from Macquarie, this process presents one way you may be able to obtain compensation for that loss. Importantly, the process allows you to be reimbursed up to $5,000 for professional advice (including legal advice) to consider the outcome of Macquarie’s review of your file. We are offering initial assistance to those eligible to have their file reviewed under the Client Review Process on a no cost and no obligation basis.
In January 2013, Macquarie and the Australian Securities and Investments Commission (ASIC) agreed to an Enforceable Undertaking (EU). The EU followed an extensive ASIC investigation into Macquarie’s financial product advice business which revealed a series of serious deficiencies including:
- client files not containing statements of advice;
- advisers failing to demonstrate reasonable basis for advice provided to the client;
- poor client records and lack of detail contained in advice documents;
- lack of supporting documentation on files to determine if there was a reasonable basis for the advice provided to the client; and
- failing to provide sufficient evidence that clients were sophisticated investors.
Owing to the systemic nature of these deficiencies, hundreds or even thousands of Macquarie customers may have been misclassified as sophisticated or wholesale investors rather than retail investors, with the result that they may have been pushed into exotic, high risk investment products unsuitable for them.
On 4 July 2014, Macquarie wrote to its current or former customers who may have been affected by the above types of misconduct, to advise that Macquarie was commencing a review of the customer’s account in order to determine whether they received inappropriate financial advice or services.
On 13 August 2014, Macquarie wrote to its customers advising of the Client Review Process. Having your fire reviewed as part of this process does not prevent you from subsequently taking your claim to the Financial Ombudsman Service, or taking legal action (although important time limits may still apply). Although Macquarie’s process is not a perfect one, it presents an opportunity to put your claim to Macquarie to see if it can be resolved prior to seeking external review. If Macquarie is prepared to make reasonable offers of compensation through this process, your claim is likely to resolve faster than if it was taken to the Ombudsman or to court.
Slater and Gordon is providing assistance to Macquarie customers who wish to have their file reviewed by Macquarie, and will offer independent legal advice on this process, initially, on a no cost and no obligation basis. To contact us, please complete the form on the right hand side of this webpage or call 1800 555 777.
Sydney Morning Herald article of 2 August 2014, including comments from Slater and Gordon’s Mark Walter
Financial Advice Claims Case Stidies
Brochure about our expertise in handling Professional Negligence claims
Information about negligence claims relating to financial advice