Following a review by ASIC, five of Australia's largest retail banks will improve compliance measures and controls for deposit accounts that can be operated by a third party, such as a financial adviser.The five reviewed banks were:•    Bendigo and Adelaide Bank Limited;•    Commonwealth Bank of Australia;•    Macquarie Bank Limited;•    National Australia Bank Limited; and•    Westpac Banking Corporation.While Bank of Queensland also provides accounts of this kind, it was not included in this review because it had been the subject of a separate earlier investigation. "Banks have a legal obligation to exercise reasonable care and skill when processing transactions on a customer's account to ensure that those transactions are consistent with the wishes of the customer," ASIC noted.This industry-wide review was prompted by concerns raised through ASIC's investigation of the conduct of persons involved in Sherwin Financial Planners Pty Ltd (in liquidation) and Wickham Securities Pty Ltd (in liquidation). By the time the Sherwin group of companies collapsed in January 2013 they owed nearly A$60 million to approximately 400 clients.The review looked at the policies, procedures and controls that banks have in place to prevent fraud and unauthorised transactions for consumers who have deposit accounts that can be operated by their adviser.The banks involved in the review have agreed to make improvements to their current practices based on our findings, including:•    ensuring account application forms adequately explain to customers that they will be giving the adviser authority to operate their account, and sending follow up communications to customers after the account is opened with details of the authority that has been given;•    better monitoring of the advisers' use of these accounts and their transaction requests, and investigating any suspicious requests; and•    considering the circumstances of any fraud that occurs using these accounts and, where appropriate, remediating a customer who has lost funds due to unauthorised transactions by their adviser.