Macquarie faces $14M savings rate penalty
By Brie CarterKey points
- Macquarie admitted to breaching the Corporations Act by misleading customers about introductory savings rate promotions.
- The lender agreed to a joint court penalty of $14 million alongside $8.8 million in prior customer remediation.
- Regulators brought the case to enforce advertising compliance and protect retail deposit holders against unclear promotional rates.
Macquarie (ASX:MQG) faces a proposed $14 million penalty after admitting to misleading retail customers over introductory savings rates.
The regulator stated that promotions run between December 2021 and September 2022 incorrectly suggested incentive margins were paid on top of standard variable rates.
The promotional structure actually operated as a standalone fixed rate, replacing the base interest rate for four months.
Macquarie confirmed it previously paid $8.8 million in direct compensation to nearly 40,000 impacted savings account holders.
Following the announcement, the Macquarie share price was unchanged at $251.54.
The Australian Securities and Investments Commission continues to scrutinise retail banking disclosures amid rising living costs across Australia.
Macquarie stated that the fine was accounted for in its financial year results and agreed not to contest the proceedings.
