The Markets Disciplinary Panel (MDP) has fined National Australia Bank’s (NAB) online broker WealthHub A$1.055 million.

An ASIC investigation found the firm failed to provide complete and accurate regulatory data more than 9.5 million times over a 10-year period.

Between July 2014 and October 2024, WealthHub repeatedly omitted or provided incorrect Intermediary IDs in trade reports. These reports were submitted to market operators, including the ASX.

The Intermediary ID is the Australian Financial Services licence number of the entity responsible for placing trades through a market participant’s trading system.

ASIC relies on this data to monitor trading patterns. It also uses the information to calculate industry funding levies and detect misconduct such as insider trading and market manipulation.

Missing or incorrect identifiers can undermine the regulator’s surveillance capabilities.

Technical and organisational failures

The MDP determined that WealthHub did not maintain the necessary technical systems, oversight, or expertise to meet its reporting obligations under the ASIC Market Integrity Rules.

The panel noted that WealthHub lacked the capacity and capability to identify and remediate the reporting issues in a timely and effective manner.

The broker missed multiple opportunities to address the root cause of the errors and failed to take adequate corrective action.

It did not submit a reportable situation report to ASIC until January 2023.

Market participants are responsible for regularly reviewing their technology platforms. They must also ensure they have staff with the appropriate expertise to identify and address reporting issues.

WealthHub has complied with the infringement notice and paid the fine.

Featured image credit: Edited by Fintech News Australia, based on image by BillionPhotos via Magnific