(Commonwealth Bank), an online securities firm owned by the Federal Bank of Australia, was fined A $ two hundred thousand for allowing relatives of a deceased client to trade his money, according to < Daily Mail.
(ASIC), the Australian Securities and Investment Commission, said CommSec had known a client had died, but had not locked two accounts under his name, and instead conducted 59 market transactions in 2014 at the direction of a relative over a seven-month period.
The investigation revealed problems with the company`s handling of deceased customer assets.
The relative was authorized to use a margin loan account if a margin deposit was needed, but could not trade in the market.
CommSec learned in March 2014 that the client, who owns a stock trading account and margin loan account, had died, but they did not lock two of his accounts in accordance with the rules on asset management for the deceased.
The ASIC Market discipline Review team said CommSec did not properly enforce and oversee the implementation of the new version of the rules and procedures for the management of deceased assets.
CommSec said it reported the error to the ASIC, and cooperated with the investigation, and its managing director, Paul Rayson, said in a statement: "We are sorry that this kind of procedural error has occurred, but fortunately there was no loss or complaint to the client. We have now complied with the latest regulations to ensure compliance. Our customers and our own regulatory responsibilities are at the top of the list. "
CommSec indicates that the asset handler for the deceased has been modified to prevent similar events from happening in the future.
