Macquarie Bank Limited (Macquarie) has admitted failures in the way it promoted its Welcome Rate offer for new savings account customers.
In proceedings brought by ASIC in the NSW Supreme Court, Macquarie has admitted a contravention of the Corporations Act 2001, with the parties jointly proposing a $14 million penalty to the Court.
Macquarie variously described its Welcome Rate as a ‘welcome variable rate’ and a ‘bonus’, which ASIC alleges could lead 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.
Macquarie has admitted it failed to take necessary steps to ensure statements about its Welcome Rate were clear and not likely to cause confusion to new customers.
It also admitted its advertising framework was not sufficiently rigorous to identify the risk that customers could misunderstand the offer. It lacked clear internal guidance about how the product operated and customer complaints did not prompt a sufficiently timely correction.
The proposed penalty comes in addition to the $8.8 million in remediation initiated by Macquarie which has already been paid to nearly 40,000 customers.
ASIC Commissioner Alan Kirkland said, ‘Banks must get the basics right, which includes having systems and processes that deliver on the promises they make to customers. Customers should not have to scrutinise every transaction to check their bank has paid the correct interest or charged them correctly.
‘This wasn't just unclear wording. Macquarie's systems and controls were not rigorous enough to identify the risk that customers would misunderstand how the Welcome Rate worked.
‘At a time when Australians are contending with cost-of-living pressures, consumers deserve clear information about savings rates and the financial benefits they are promised,' Commissioner Kirkland said.
ASIC has a 2026 enforcement priority focused on pricing practices affecting the cost of living for Australians, as well as an enduring enforcement priority focused on systemic compliance failures by large financial institutions that result in consumer harm.
The proposed resolution is subject to the approval of the Court, and it is a matter for the Court to determine whether the proposed orders are appropriate and whether any other orders should be made.
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Background
Between 1 December 2021 and 9 September 2022, Macquarie advertised its Welcome Rate as a ‘welcome variable rate’ or ‘bonus offer’.
As interest rates increased during 2022, the initial margin between the Welcome Rate and the standard variable rate could narrow or disappear. If the standard rate rose above the Welcome Rate, the customer’s rate increased only to match the standard rate.
Macquarie has admitted contraventions of sections 912A(1)(a) and 912A(5A) of the Corporations Act 2001.
ASIC’s action follows an April 2025 determination by the Australian Financial Complaints Authority.