Sydney, 03 August 2014
Macquarie notes The Sydney Morning Herald's (SMH's) articles published on 2 August 2014 in relation to Macquarie Private Wealth (MPW).
Although Macquarie received a list of 45 questions from the SMH (the response to which was sent to the relevant reporter and published on our website here) the SMH omitted from the list its two central claims against MPW. These were;
Had the SMH put these claims to Macquarie, the response would have been:
Misclassification and Client Losses
With regard to the unattributed claims made about circulation of answers to competency examinations by management, Macquarie has examined the claim and found no evidence of it.
Other Issues Raised
Macquarie has already put on the public record that a review of client files and client classification is ongoing and that client remediation, which follows the Financial Ombudsman Service principles, is subject to oversight by Deloitte and ASIC. This is open to any of the clients who have raised outstanding concerns as mentioned in the SMH article. MPW is also contacting all clients to ensure they have the opportunity to raise concerns. Given that this is an ongoing process, the SMH's unattributed claim that "some estimate the losses" by MPW clients "could be many tens of millions of dollars" is without any factual basis.
The SMH's claim that Macquarie wrongly sent letters to clients is also without foundation. In all instances where letters have been sent to clients, an MPW adviser is believed to have acted on the account, even if client activity was minimal. This reflects the thorough approach that MPW has taken with client communication on this matter.
MPW is primarily a retail broking and equities advice business, with over 85 per cent of assets under advice relating to equities broking activities. Of the products on MPW's approved product list, less than four per cent are Macquarie managed funds. In addition, Macquarie Wrap is one of eight investment platforms available for advisers to recommend.
Macquarie is referring The Herald's articles to the Australian Press Council given the inaccurate, unattributed and unsubstantiated claims they contain.