The Australian Securities and Investments Commission (ASIC) said the errors occurred between 2001 and 2014 on a number of products using the Macquarie Wrap Platform, and all effected clients have been identified.
The system errors included charging an administration fee which exceeded the maximum disclosed in the product offering documents, and failing to apply sufficient tax credits to the Goods and Services Tax portion of client fees.
The Macquarie platform has investor directed portfolio services and superannuation funds that link a number of investments held by clients, and provides consolidated custody, administration and reporting to clients.
ASIC said it had been working Macquarie to resolve the issue, and the company had agreed to appoint Deloitte as an independent third party to assess the controls and processes around the remediation and compensation arrangements.
“We welcome the reporting of large system errors to ASIC. Where errors do occur, entities must identify and appropriately rectify them as soon as possible,” said ASIC commissioner Greg Tanzer.
ASIC acknowledged the cooperative approach taken by Macquarie over the errors and said it would work with any entities who report such issues to ensure consumers are compensated in a timely and effective way.