Enforceable undertakings accepted from NAB and CBA to address inadequacies within their wholesale spot FX businesses
The Australian Securities and Investments Commission (ASIC) announced it has accepted enforceable undertakings from each of the National Australia Bank Limited and the Commonwealth Bank of Australia in relation to the banks' wholesale spot foreign exchange (FX) businesses.
As a result of ASIC's investigation, ASIC is concerned that between 1 January 2008 and 30 June 2013, both banks failed to ensure that their systems and controls were adequate to address risks relating to instances of inappropriate conduct identified by ASIC.
"A well-functioning foreign exchange market depends on all participants acting with integrity and fairness. ASIC is committed to ensuring that major financial institutions have in place effective mechanisms for ensuring that their employees are trained, monitored and supervised to provide financial services efficiently, honestly and fairly," ASIC Commissioner Cathie Armour said.