The Australian Securities and Investments Commission (ASIC) said ANZ submitted inaccurate data to the Government and engaged in “unconscionable conduct” that affected almost 65,000 customers.
ANZ chair Paul O’Sullivan admitted the bank had “made mistakes”.
The fine needs to be approved by the Federal Court.
Fine
ASIC has requested the Federal Court impose the $240 million fine on ANZ for:
Acting “unconscionably in its dealings” in relation to a $14 billion bond deal with the Government. A bond is a loan to the Government or a business by individual investors. It gets paid back over time with interest. Bonds let the Government borrow money to fund projects (e.g. schools and roads).
Incorrectly reporting bond trading data to the Government “by tens of billions of dollars”.
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Not responding to customer hardship notices – when people tell banks they are having difficulty repaying a loan – for up to two years. ASIC says banks need to respond to these notices within 21 days.
Not paying bonus interest to customers as advertised, and displaying “inaccurate” interest rates.
Not refunding fees charged to people who had died, and then not responding to the people managing the deceased’s estates in a timely manner.
It is the eleventh time ASIC has brought legal action against ANZ since 2016.
Comments
ANZ Chairman Paul O’Sullivan said: “We made mistakes that have had a significant impact on customers… I apologise and assure our customers we have taken the necessary action, including holding relevant executives accountable.”
ASIC Deputy Chair Sarah Court said: “If these penalties are imposed by the court, it will be a clear message to ANZ and all other banks that the cost of breaking the law is not an acceptable cost of doing business.”
