Macquarie Group's investment management arm will refund customers $5.3 million after system errors incorrectly charged around 2300 clients over the past 13 years.
The Australia Securities and Investment Commission (ASIC) today revealed Macquarie Investment Management Limited had reported several errors with its 'Macquarie Wrap' platform between 2001 and 2014, specifically relating to a number of white labelled Wrap Super and Pension and Wrap IDPS products.
Macquarie Wrap allows financial advisors to administer client investment, superannuation and pension savings and acts as a one-stop shop for visibility of investments.
The errors had meant some clients were overcharged admin fees beyond the maximum amount stipulated in product documents, while others had not had the sufficient tax credits to the GST portion of their fees applied.
Macquarie appointed Deloitte to ensure its controls and processes were remedied to prevent a similar future error, and that all affected clients were compensated appropriately.
ASIC said all errors had been rectified and clients would begin receiving compensation from today.
Those who were affected but are no longer using the platforms would be contacted directly by Macquarie to discuss refund arrangements, ASIC said.
'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," ASIC commissioner Greg Tanzer said in a statement.
As at the end of last year, Macquarie Investment Management had over $330 billion in assets under its management and more than 900 staff.
The wealth division of National Australia Bank was last year forced to hand out a "small amount" of additional compensation to the $1.9 million it refunded in 2012 due to errors on its Navigator platform.
Around 43,000 wealth customers between 2006 and 2012 had incorrect incorrect investment allocated to their account.