ANZ Under Investigation by ASIC Over Governance Concerns
The Australian Securities and Investments Commission progresses in its inquiry into ANZ's alleged governance missteps.
The Australian Securities and Investments Commission (ASIC) has announced that its investigation into corporate governance failures at ANZ Banking Group is in its advanced stages.
ASIC Chairman Joe Longo has indicated that the regulator expects to conclude the investigation and make a formal announcement by mid-2023. This inquiry, noted as one of ASIC's most intricate undertakings, centers on allegations that ANZ traders manipulated bond rates during a significant $14 billion government bond sale in April 2023.
ASIC's investigation is part of a broader scrutiny faced by ANZ, which also includes an additional $250 million capital charge imposed by the Australian Prudential Regulation Authority.
This penalty followed admissions that ANZ's markets unit inflated bond trading figures reported to the federal government and findings of misconduct among Sydney dealing room traders.
Sources from ASIC suggest that the investigation may lead to litigation against ANZ, as external legal teams review evidence gathered during the probe.
Specific details on potential charges or legal actions remain under assessment.
In parallel, ASIC is examining claims regarding ANZ's calculations on customer savings account interest and its handling of hardship provisions.
These inquiries are part of ASIC's broader agenda to ensure financial institutions address customer concerns transparently and effectively.
ASIC has increased its regulatory actions, marked by a 31% rise in investigations and a 33% increase in successful summary prosecutions in the latter half of 2024. This uptick follows efforts to enhance oversight in the financial sector, spurred by findings from the banking royal commission.
The commission's focus extends beyond banking to insurance and superannuation sectors, with particular attention to customer hardship applications.
Recent actions include litigation against super fund Cbus and insurer QBE, and against National Australia Bank concerning hardship complaints.
Longo also emphasized ASIC's commitment to digital transformation, identifying it as a crucial area needing investment to maintain the regulator's relevance and effectiveness in the evolving financial landscape.
ANZ has declined to comment on the ongoing investigations and regulatory actions.
ASIC Chairman Joe Longo has indicated that the regulator expects to conclude the investigation and make a formal announcement by mid-2023. This inquiry, noted as one of ASIC's most intricate undertakings, centers on allegations that ANZ traders manipulated bond rates during a significant $14 billion government bond sale in April 2023.
ASIC's investigation is part of a broader scrutiny faced by ANZ, which also includes an additional $250 million capital charge imposed by the Australian Prudential Regulation Authority.
This penalty followed admissions that ANZ's markets unit inflated bond trading figures reported to the federal government and findings of misconduct among Sydney dealing room traders.
Sources from ASIC suggest that the investigation may lead to litigation against ANZ, as external legal teams review evidence gathered during the probe.
Specific details on potential charges or legal actions remain under assessment.
In parallel, ASIC is examining claims regarding ANZ's calculations on customer savings account interest and its handling of hardship provisions.
These inquiries are part of ASIC's broader agenda to ensure financial institutions address customer concerns transparently and effectively.
ASIC has increased its regulatory actions, marked by a 31% rise in investigations and a 33% increase in successful summary prosecutions in the latter half of 2024. This uptick follows efforts to enhance oversight in the financial sector, spurred by findings from the banking royal commission.
The commission's focus extends beyond banking to insurance and superannuation sectors, with particular attention to customer hardship applications.
Recent actions include litigation against super fund Cbus and insurer QBE, and against National Australia Bank concerning hardship complaints.
Longo also emphasized ASIC's commitment to digital transformation, identifying it as a crucial area needing investment to maintain the regulator's relevance and effectiveness in the evolving financial landscape.
ANZ has declined to comment on the ongoing investigations and regulatory actions.
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