British bank Barclays has fallen foul of the Australian regulator who has has accepted an enforceable undertaking from three of Barclays’ foreign financial services providers.
As part of the terms of the enforceable undertaking (EU), the Barclays units will contribute $500,000 Australian dollars to The Ethics Centre for research and development into the provision of financial services to Australian clients.
The enforceable undertaking was accepted by The Australian Securities and Investments Commission (ASIC) following concerns about significant breaches of the conditions of the ASIC class order licensing exemptions relied on by the Barclays entities, which included a failure to notify ASIC of breaches within the required timeframe.
Hong Kong Unit
The Barclays Entities concerned are Barclays Capital Inc. (BCI) domiciled in the United States of America, Barclays Capital Asia Limited (BCAL) domiciled in Hong Kong, and Barclays Capital Securities Limited (BCSL) domiciled in the United Kingdom, collectively «the Barclays entities.»
«The Barclays entities» failed to disclose to clients that they were exempt from holding an Australian Financial Services Licence (AFSL) and are regulated by the relevant overseas regulatory authority,» the regulator said.
Serious, Systemic Weaknesses
Under the terms of the EU the Barclays entities must engage an ASIC approved independent expert to, among other things review and test the compliance framework implemented by the Barclays entities following the reporting of breaches, to meet the relevant conditions of the ASIC licensing exemption.
They must also report any deficiencies and make recommendations on how to rectify those deficiencies to ensure effective and enduring compliance with the relevant conditions of the ASIC licensing exemption.
