Macquarie Group’s risk management has been condemned by the corporate regulator after it found significant supervision and compliance failures in the global investment bank’s derivatives trading arm, and imposed stringent conditions on its financial services licence.

The Australian Securities and Investments Commission said it had found nine areas of concern in Macquarie’s derivatives division in the past 18 months. These include the misreporting of more than 375,000 over-the-counter derivative transactions, and two futures dealing matters, concerning the prevention and detection of suspicious trading activity.