Commonwealth Bank's stockbroking arm has paid a $200,000 fine after mistakenly allowing the relative of a deceased client to make transactions with their funds.
The Australian Securities and Investments Commission says CommSec in 2014 failed to lock two accounts belonging to a client it knew had died and instead processed 59 market transactions over a seven-month period on the instructions of a relative.
The relative was authorised to trade on a margin loan account in the event of a margin call, but not to provide instructions to enter into any of the market transactions.
ASIC's markets disciplinary panel said CommSec had failed to properly implement or monitor its recently restructured deceased estate policies and procedures.
CommSec said it reported the mistake to ASIC and had been co-operating with the corporate regulator.
"We acknowledge and regret this process error. There were no losses to customers or complaints, and our processes have since been updated to ensure compliance," CommSec managing director Paul Rayson said in a statement.
"Our customer and regulatory responsibilities are of paramount importance."
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