What happened
WealthHub Securities Limited, an online broker owned by NAB that operates nabtrade and JBWere Ltd, has been fined $1.055 million by the Markets Disciplinary Panel (MDP). The fine relates to failures to accurately report regulatory data more than 9.5 million times over a period from 28 July 2014 to 31 October 2024.
What the failures involved
The failures centred on the Intermediary ID field in orders and trade reports submitted to market operators, including ASX. WealthHub repeatedly left this field empty or entered the wrong AFS licence number.
The MDP found that WealthHub lacked the systems, expertise and oversight required to detect and fix the problem. WealthHub did not lodge a reportable situation report to ASIC until January 2023, missing multiple earlier opportunities to address the root cause.
The penalty and its legal status
WealthHub has paid the $1.055 million fine. Under subsection 798H(1) of the Corporations Act 2001, payment of the fine does not constitute an admission of guilt or liability.
What the MDP stressed
The MDP stated that all market participants are responsible for regularly reviewing their technology systems and ensuring staff have the expertise to identify and fix reporting issues.
Key actions
- AFS licence holders and market participants are required to check that their trading and reporting systems correctly populate the Intermediary ID field - their AFS licence number - in all orders and trade reports submitted to market operators such as ASX or Cboe.
- ASIC Market Integrity Update Issue 130, published September 2021, sets out obligations for accurate and complete regulatory data including Intermediary ID requirements. It is available at asic.gov.au.
- Businesses are required to have documented processes and staff with the technical expertise to identify and remediate reporting breaches promptly, and to lodge a reportable situation report with ASIC as soon as a breach is identified.
- The full infringement notice is available on ASIC's MDP Outcomes Register at asic.gov.au.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.