Breaking: Macquarie faces $14m fine for savings rate failures

Résumé détaillé

Macquarie Bank has admitted to failures in the promotion of its "welcome" interest rate for new savings account customers.

Macquarie Bank has admitted to failures in the promotion of its "welcome" interest rate for new savings account customers.

The bank has admitted to breaching the Corporations Act and could face a $14 million penalty, in proceedings brought by ASIC.

Macquarie described the interest rate as a "welcome variable rate" and a "bonus", which ASIC alleges could have led customers to believe it was paid on top of the standard variable rate.

In fact, the Welcome Rate generally operated as a fixed rate that applied instead of, rather than in addition to, the standard rate during the four-month promotional period, the regulator said.

The penalty, which the parties have jointly proposed to the NSW Supreme Court, comes in addition to $8.8 million in remediation initiated by Macquarie which has already been paid to nearly 40,000 customers.

Macquarie Bank said it would not contest the ASIC proceeding and is expected to pay a $14 million civil penalty.

It said the ASIC announcement related to products offered on its website between December 2021 and September 2022.

It said it would admit to a contravention of its obligation to ensure it provided financial services efficiently, honestly and fairly.

"Macquarie's website offered a Welcome Rate on its Macquarie Savings Account," the bank said in a statement.

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