Commonwealth Bank's stock brokerage business CommSec has agreed to an independent review of the way it handles clients' money, following demands from the corporate watchdog.
Commsec and another of CBA's trading businesses, Ausiex, will appoint an independent expert to review their money handling processes and rectify any deficiencies, the Australian Securities and Investments Commission (ASIC) said.
Both companies completed a remediation program in late 2012 to address weaknesses in their money handling arrangements, such as withdrawing client money from trust accounts without the required written authorisations.
CommSec and Ausiex also failed to separate client money from their own company funds, ASIC said.
The independent expert is expected to report back in mid-2014.
"Under the law, licensees must keep client money separate from their own. This is an important safeguard to protect the interests of retail investors," ASIC said in a statement.
