Financial advisers licensed through InterPrac were restricted from using the Macquarie cash management account for a week as part of a review process carried out by the bank, with conflicting reports on what notice practitioners were given about the move.
Macquarie Bank confirmed to selfmanagedsuper that financial advisers connected to Sequoia, the parent company of InterPrac, had access to its platform and products temporarily suspended while it conducted a review. Additionally, Sequoia was advised of this when the review started early last week, and access was being restored from 28 September.
Dixon Financial Group managing director Jon Dixon, based in Bunbury, Western Australia, said his access to clients’ SMSF cash management accounts and wrap accounts was cut as of Monday, 21 September, but claimed it took place without prior notice.
“I have 150 SMSF clients where I cannot access or trade on their accounts and was locked out of Macquarie with no warning, and the only reason was they are doing a review due to me being with InterPrac,” Dixon told selfmanagedsuper.
“I have been using Macquarie for 35 years and had nothing whatsoever to do with any Shield or First Guardian advice. I didn’t put one cent into them and they know that from their own platform, so why am I being targeted? I’ve done nothing wrong whatsoever.”
He was additionally critical of the review, given Macquarie’s involvement in offering the Shield and First Guardian products to its clients and then compensating them after those master trusts collapsed.
“Macquarie need to be careful because they have done a few things wrong in the last few years and they admitted liability. None of that was my fault, but I feel I am being punished for their stuff-up,” he said.
InterPrac also confirmed there was a temporary disruption to access to the Macquarie platform for some advisers, but did not elaborate on whether that was communicated to them in advance.
“This was an administrative matter that we have been working through directly with Macquarie,” the licensee stated.
“It is business as usual for InterPrac and its advisers, and we have been in regular contact with them throughout. Client funds were secure at all times.”
Jason Spits
SENIOR JOURNALIST
Jason is a senior journalist with Benchmark Media and writes for the selfmanagedsuper website and magazine and smstrusteenews website. He has covered financial services since 1999 and has written about life insurance, superannuation, investment management and financial advice, in both a freelance and in-house capacity, and also did a brief stint as a media manager for an industry association. He has been the editor of trade titles Money Management and Financial Standard, and was most recently senior journalist with life insurance title Riskinfo.
Articles by Jason