Macquarie Bank to pay $14m penalty after confusing ‘welcome rate’ promotion

Macquarie Bank to pay $14m penalty after confusing ‘welcome rate’ promotion

Macquarie Bank faces a $14 million penalty from the Australian Securities and Investments Commission for violating the Corporations Act through misleading 2022 savings promotions. The regulator argued that describing offers as "welcome variable rates" or "bonus" led customers to believe interest was added on top of the standard rate, even though the gap narrowed as rates rose. ASIC commissioner Alan Kirkland stated that the bank's internal systems failed to prevent customers from misunderstanding how the rates functioned. Consequently, clients eventually received only the standard variable rate once it surpassed the promotional offer, without any additional bonus. The bank has admitted in court proceedings that its controls were insufficient to identify these risks.