Latest news with #Wikramanayake
Herald Sun
15-06-2025
- Business
- Herald Sun
ASIC drafted 17 briefings on Macquarie Group ASX MQG in 10 months
The corporate regulator recoiled at Macquarie's 'legalistic engagement' in a meeting with the bank's boss, Shemara Wikramanayake, to discuss the scandals happening inside the investment bank that led to four enforcement actions in a year. The Australian Securities and Investments Commission prepared 17 briefings related to Macquarie over the 10 months to May this year, documents released under Freedom of Information show. They hint at growingconcern at The Australian Securities & Investments Commission over Macquarie, which was the target of regulatory interventions for misreporting up to 1.5 billion short sale trades and allegedly manipulating the electricity market. ASIC chair Joe Longo described his concern with Macquarie's engagement with the regulator and repeated risk failures last month as 'a kind of hubris'. One briefing paper, provided to 14 different ASIC staff, outlines the topics canvassed by the regulator when it met with Ms Wikramanayake on September 19 last year. That was six days before ASIC fined it $5m for suspicious electricity trades. The paper shows ASIC took issue with Macquarie's overly 'legalistic engagement' after wrapping up an investigation into the financial giant's failures that allowed 50 breaches of market integrity rules by allowing clients to place their orders within minutes of the market close. ASIC reminded Macquarie two of its most senior executives 'have individual obligations as accountable persons', a nod to the Financial Accountability Regime, which enables the regulator to target executive pay. The millionaires' factory paid Ms Wikramanayake $24m over the last financial year, and $25.2m the year before. ASIC also flagged its interest in Macquarie's growing involvement in private and unlisted markets. The regulator sought to remind the bank 'it should come as no surprise that we will be looking at one of the largest transactions involving Australian firms'. In particular, ASIC highlighted 'regulatory inconsistencies', being interested in whether companies were engaging in 'regulatory arbitrage between public and private markets due to inconsistent obligations'. Macquarie's role in the $480m Shield Master Fund collapse also appears in ASIC briefs. Macquarie offered access to Shield through its Wealth Wrap superannuation platform. 'We are taking these matters very seriously, particularly having regard to Macquarie's significant position in the Australian financial system and its potential impact on consumers and markets,' ASIC said. Only a handful of the documents ASIC prepared on Macquarie were accessible by The Australian. ASIC senior lawyer Haydar Tuncer said many disclosed law enforcement methods and procedures and 14 of the 17 documents demonstrate 'how ASIC determines whether or not it will pursue possible regulatory action'. 'Disclosure would forewarn the regulated population of ASIC's considerations and give insight into the aspects of the way in which ASIC goes about its task of regulatory compliance,' he said. 'Release of this information would enable persons to tailor their activities to evade scrutiny, thus circumventing the established legislative structure for regulation of market misconduct matters.' Mr Haydar noted three documents 'comprise confidential information that an authority of a foreign government – a foreign regulator – has shared with ASIC on a confidential basis'. 'Disclosure of such information would have a direct impact on ASIC's international memberships and reputation and ultimately our ability to obtain confidential information to support our enforcement, supervision and regulatory activities,' he said. While the foreign regulator is not disclosed, ASIC's other briefing notes refer to probes by the United States Securities and Exchange Commission and the United Kingdom's Financial Conduct Authority. In one instance, Macquarie overvalued 4900 large illiquid collateralised mortgage obligations, after the SEC found the bank attempted to minimise losses by arranging cross-trades rather than selling the securities into the market. 'We consider this matter to raise serious concerns about Macquarie's risk culture and their management of conflicts of interest,' ASIC noted. 'Particularly problematic is the cross-trading aspect shows Macquarie preferencing the interests of institutional investors over retail mutual funds.' 'We are engaging with Macquarie on how they are ensuring that similar conduct would not occur within their Australian business.' A further three documents contained materials over which the Australian Prudential Regulation Authority's secrecy provisions apply. Originally published as ASIC drafted 17 briefings on Macquarie Group in 10 months: Freedom of Information
Sydney Morning Herald
09-05-2025
- Business
- Sydney Morning Herald
Macquarie chief's pay cut to $24m as ‘millionaires' factory' rakes in $3.7b
Senior Macquarie Group bankers including chief executive Shemara Wikramanayake have received a smaller share of profits in response to the corporate watchdog's move to slap licence conditions on the bank over repeated compliance failings. As Macquarie reported $3.7 billion in full-year profits on Friday, the investment bank known as the 'millionaires' factory' for its bumper pay packets also revealed how much it had paid its top executives. The results came days after the Australian Securities and Investments Commission (ASIC) said it had imposed extra licence conditions on the Sydney-based bank after 'multiple and significant' compliance failures in its futures and its derivatives trading areas. Macquarie's annual report said the board had taken into account 'risk and regulatory matters' when setting pay, particularly ASIC's licence conditions, and this had been reflected in awarding executives including Wikramanayake and the chief executive of Macquarie Bank Limited (MBL), Stuart Green, a lower profit share. Wikramanayake's pay for the full year dropped to $24 million, from $25.3 million the previous year, as the profit share awarded to the CEO dropped 5 per cent. Despite the lower profit share for Green, his overall pay edged up from $5.1 million to $5.2 million. Loading The chair of Macquarie's board remuneration committee, Jillian Broadbent, said the board had considered both financial factors – including the bank's higher profits, return on equity and dividends – and non-financial factors, when setting pay. 'The board takes MBL's obligations as a licensed entity seriously and acknowledges there are areas where we can further improve compliance,' Broadbent said. The report said that among the group's most senior executives, total comparable key management personnel awarded profit share had increased 3 per cent to $82.3 million. Wikramanayake last year topped The Australian Financial Review 's list of the country's highest-paid chief executives.
The Age
09-05-2025
- Business
- The Age
Macquarie chief's pay cut to $24m as ‘millionaires' factory' rakes in $3.7b
Senior Macquarie Group bankers including chief executive Shemara Wikramanayake have received a smaller share of profits in response to the corporate watchdog's move to slap licence conditions on the bank over repeated compliance failings. As Macquarie reported $3.7 billion in full-year profits on Friday, the investment bank known as the 'millionaires' factory' for its bumper pay packets also revealed how much it had paid its top executives. The results came days after the Australian Securities and Investments Commission (ASIC) said it had imposed extra licence conditions on the Sydney-based bank after 'multiple and significant' compliance failures in its futures and its derivatives trading areas. Macquarie's annual report said the board had taken into account 'risk and regulatory matters' when setting pay, particularly ASIC's licence conditions, and this had been reflected in awarding executives including Wikramanayake and the chief executive of Macquarie Bank Limited (MBL), Stuart Green, a lower profit share. Wikramanayake's pay for the full year dropped to $24 million, from $25.3 million the previous year, as the profit share awarded to the CEO dropped 5 per cent. Despite the lower profit share for Green, his overall pay edged up from $5.1 million to $5.2 million. Loading The chair of Macquarie's board remuneration committee, Jillian Broadbent, said the board had considered both financial factors – including the bank's higher profits, return on equity and dividends – and non-financial factors, when setting pay. 'The board takes MBL's obligations as a licensed entity seriously and acknowledges there are areas where we can further improve compliance,' Broadbent said. The report said that among the group's most senior executives, total comparable key management personnel awarded profit share had increased 3 per cent to $82.3 million. Wikramanayake last year topped The Australian Financial Review 's list of the country's highest-paid chief executives.
The Age
09-05-2025
- Business
- The Age
Macquarie chief's pay cut as bank rakes in $3.7 billion
Senior Macquarie Group bankers including chief executive Shemara Wikramanayake have received a smaller share of profits in response to the corporate watchdog's move to slap licence conditions on the bank over repeated compliance failings. As Macquarie reported $3.7 billion in full-year profits on Friday, the investment bank known as the 'millionaire's factory' for its bumper pay packets also revealed how much it had paid its top executives. The results came days after the Australian Securities and Investments Commission (ASIC) said it had imposed extra licence conditions on the Sydney-based bank after 'multiple and significant' compliance failures in its futures and its derivatives trading areas. Macquarie's annual report said the board had taken into account 'risk and regulatory matters' when setting pay, particularly ASIC's licence conditions, and this had been reflected in awarding executives including Wikramanayake and the chief executive of Macquarie Bank Limited, Stuart Green, a lower profit share. Wikramanayake's pay for the full year dropped to $24 million, from $25.3 million the previous year, as the profit share awarded to the CEO dropped by 5 per cent. Despite the lower profit share for Green, his overall pay edged up from $5.1 million to $5.2 million. The chair of Macquarie's board remuneration committee, Jillian Broadbent, said the board had considered both financial factors – including the bank's higher profits, return on equity and dividends – and non-financial factors. 'The Board takes MBL's obligations as a licensed entity seriously and acknowledges there are areas where we can further improve compliance,' Broadbent said. The report said that among the group's most senior executives, total comparable key management personnel awarded profit share had increased by 3 per cent to $82.3 million. Macquarie's results showed a 33 per cent rise in profit contribution in its flagship asset management business, as well as an 11 per cent rise in profits from the banking division.
Sydney Morning Herald
09-05-2025
- Business
- Sydney Morning Herald
Macquarie chief's pay cut as bank rakes in $3.7 billion
Senior Macquarie Group bankers including chief executive Shemara Wikramanayake have received a smaller share of profits in response to the corporate watchdog's move to slap licence conditions on the bank over repeated compliance failings. As Macquarie reported $3.7 billion in full-year profits on Friday, the investment bank known as the 'millionaire's factory' for its bumper pay packets also revealed how much it had paid its top executives. The results came days after the Australian Securities and Investments Commission (ASIC) said it had imposed extra licence conditions on the Sydney-based bank after 'multiple and significant' compliance failures in its futures and its derivatives trading areas. Macquarie's annual report said the board had taken into account 'risk and regulatory matters' when setting pay, particularly ASIC's licence conditions, and this had been reflected in awarding executives including Wikramanayake and the chief executive of Macquarie Bank Limited, Stuart Green, a lower profit share. Wikramanayake's pay for the full year dropped to $24 million, from $25.3 million the previous year, as the profit share awarded to the CEO dropped by 5 per cent. Despite the lower profit share for Green, his overall pay edged up from $5.1 million to $5.2 million. The chair of Macquarie's board remuneration committee, Jillian Broadbent, said the board had considered both financial factors – including the bank's higher profits, return on equity and dividends – and non-financial factors. 'The Board takes MBL's obligations as a licensed entity seriously and acknowledges there are areas where we can further improve compliance,' Broadbent said. The report said that among the group's most senior executives, total comparable key management personnel awarded profit share had increased by 3 per cent to $82.3 million. Macquarie's results showed a 33 per cent rise in profit contribution in its flagship asset management business, as well as an 11 per cent rise in profits from the banking division.
