Macquarie response to Seven News item broadcast on 16 August 2014
Sydney, 18 August 2014
Macquarie notes the Seven News report by Jackie Quist on Saturday 16 August in relation to potential compensation claims faced by Macquarie Private Wealth (MPW) over financial advice it gave a former client, and MPW’s failure to “take responsibility” for client losses.
Seven News did not contact Macquarie for an opportunity to respond, a right which is reflected in Australian journalism codes of ethics.
Had Seven News put these claims to Macquarie, the response would have been:
- Although the client was in fact a qualified accountant with experience in a number of senior executive roles including as chief financial officer, he was always treated as a retail client and received full financial advice. This advice, which the client acknowledged in writing, included advice against gearing (borrowing to purchase shares) because the client was retired and gearing increased the potential for capital losses.
It was not apparent whether the lawyer quoted in the segment had any knowledge of the matter, or was merely seeking business.