Court approves ANZ and ASIC settlement over bank trading and the Bank Bill Swap Rate
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ANZ has announced the Federal Court of Australia has approved its settlement with the Australian Securities and Investments Commission (ASIC) in relation to attempted unconscionable conduct and also compliance controls in the Australian interbank Bank Bill Swap Rate (BBSW) market.
ANZ acknowledged in a statement that in the course of trading on the BBSW market, a small number of traders attempted to engage in unconscionable conduct on 10 dates between September 2010 and February 2012. ANZ added that there has been no allegation by ASIC of collusion between ANZ and other institutions.
ANZ chief risk officer Nigel Williams said: “We know our customers and the community expect better from us and we apologise for both the attempted unconscionable conduct and our inability to prevent or detect the behaviour.”
Since 2015, ANZ said it has significantly changed the way it manages its markets business, including new policies and systems as well as introducing extensive training for all its traders.
As part of the resolution, ANZ has agreed to a $10 million penalty. ANZ has also agreed to make a payment of $20 million to a financial consumer protection fund and a $20 million payment toward ASIC’s costs.
ANZ has also agreed to enter into an enforceable undertaking with ASIC, where an independent expert will be appointed to review controls, policies, training and monitoring of BBSW trading.
ANZ said the financial impact of the agreement was reflected in its 2017 financial year results.
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ANZ acknowledged in a statement that in the course of trading on the BBSW market, a small number of traders attempted to engage in unconscionable conduct on 10 dates between September 2010 and February 2012. ANZ added that there has been no allegation by ASIC of collusion between ANZ and other institutions.
ANZ chief risk officer Nigel Williams said: “We know our customers and the community expect better from us and we apologise for both the attempted unconscionable conduct and our inability to prevent or detect the behaviour.”
Since 2015, ANZ said it has significantly changed the way it manages its markets business, including new policies and systems as well as introducing extensive training for all its traders.
As part of the resolution, ANZ has agreed to a $10 million penalty. ANZ has also agreed to make a payment of $20 million to a financial consumer protection fund and a $20 million payment toward ASIC’s costs.
ANZ has also agreed to enter into an enforceable undertaking with ASIC, where an independent expert will be appointed to review controls, policies, training and monitoring of BBSW trading.
ANZ said the financial impact of the agreement was reflected in its 2017 financial year results.
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