ASIC has imposed additional licence conditions on Macquarie Bank's Australian Financial Services Licence.
The corporate regulator imposed the additional conditions after it investigated a series of breach reports lodged by Macquarie relating to breaches of the client money provisions of the Corporations Act, from March 2004 to 2014.
Client money is money paid by investors to an AFSL holder in connection with a financial product or the provision of a financial service.
"The additional conditions require Macquarie to engage an expert, approved by ASIC, to review, assess and report on the adequacy of Macquarie's procedures for ensuring compliance with the client money requirements of the Act and make recommendations for improvements," said an ASIC statement.
ASIC Commissioner John Price said: "ASIC expects licensees to maintain strict controls and follow proper procedures in their handling of client funds. Where that does not occur, ASIC will take action to ensure a licensee's ability to continue operating is contingent on its compliance with these requirements."
The breaches reported by Macquarie raised issues that include failing to deposit monies into a designated client trust account and making withdrawals that were not permitted from such an account, said ASIC.
Macquarie has filed an application for review of the decision before the Administrative Appeals Tribunal and has also sought a stay of the decision pending the outcome of the review.