Macquarie accused of 'systemic failures' by ASIC | The Business | ABC NEWS
The corporate regulator ASIC is suing the broking arm of Macquarie for alleged misreporting of up to $1.5 billion short sales over nearly 15 years. Short selling is a high-risk strategy that aims to profit off the price of a financial product falling. It’s the fourth action the regulator has taken against the company in just over a year. The chair Joe Longo says this case demonstrates systemic failures over a long period of time at Macquarie Group and a level of complancy that’s set in at the institution. He says ASIC repeatedly raised the short selling issue with Macquarie starting in 2015, but the company has failed to address it, leading the regulator to launch a civil lawsuit. Mr Longo says ASIC is not alleging the action was deliberate but he says it has serious ramifications as it obsures the transparency of Australia’s financial markets and interferes with the regulator’s understanding of how they’re functioning. He says while Macquarie may be a long way away from losing its license, the regulator will continue to pursue it until it rectifies its failings.
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