CommSec responds to $200k ASIC fine
Commonwealth Securities Limited (CommSec) says it is still committed to providing secure services to customers after receiving a $200,000 infringement notice penalty from the Australian Securities and Investments Commission (ASIC) for violating market integrity rules.
The Commonwealth Bank's (CBA's) stockbroking firm was issued the notice from ASIC on the grounds of having contravened two rules relating to supervisory policy implementation in a case regarding the mismanagement of the accounts of a client who died in early 2014.
Between March and October of 2014, CommSec entered into 59 market transactions on behalf of the deceased client on its online trading portal. Although on the instructions of an authorised relation of the deceased client, the family member was not authorised to provide instructions to enter into any of the market transactions.
A statement from CommSec managing director, Paul Rayson, said that the firm would work to increase compliance measures in the wake of the infringement.
"We acknowledge and regret this process error; our processes have since been updated to ensure compliance," he said.
"We have worked collaboratively with ASIC on this matter... our customer and regulatory responsibilities are of paramount importance."
CommSec self-reported the error in 2014, after it was found that the restructure of the deceased's estate had resulted in a backlog of work after the firm failed to apply a holder record lock to the two accounts of the deceased client following a formal notification of the death.
The infringement noticed was lodged on 19 October.
AUTHOR
Hope William-Smith
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