Enforceable undertakings accepted from ANZ and NAB to address conduct relating to BBSW
The Australian Securities & Investments Commission (ASIC) has announced that the Australia and New Zealand Banking Group (ANZ) and National Australia Bank (NAB) have entered into enforceable undertakings (EUs) in relation to each bank's bank bill trading business and their participation in the setting of the Bank Bill Swap Rate (BBSW).
On 10 November 2017, the Federal Court made declarations that each of ANZ and NAB had attempted to engage in unconscionable conduct in connection with the supply of financial services in attempting to seek to change where the BBSW was set. The court also declared that each bank failed to do all things necessary to ensure that they provided financial services honestly and fairly.
The Federal Court imposed pecuniary penalties of $10 million each on ANZ and NAB for the attempts to engage in unconscionable conduct in respect of the setting of BBSW. The court also noted that each of ANZ and NAB will give EUs to ASIC which provides for them to take certain steps and to pay $20 million to be applied to the benefit of the community, and that each will pay $20 million towards ASIC’s investigation and other costs.