Australia’s ANZ Group has agreed to pay a record A$240 million in penalties to the nation’s corporate regulator, the Australian Securities and Investments Commission (ASIC), for a series of systemic failures. The misconduct ranged from acting “unconscionably” during a government bond issuance to the widespread practice of charging fees to deceased customers. ASIC Chair Joe Longo condemned the bank’s actions, stating, “Time and time again ANZ betrayed the trust of Australians,” and describing the bond deal conduct as “grubby.”
The settlement, which requires Federal Court approval, resolves five separate investigations. The most significant violation involved ANZ’s actions during a A$14 billion government bond deal in April 2023. The regulator found that instead of trading gradually, ANZ sold large volumes of bond futures just before pricing, artificially pushing prices down. This action cost the government an estimated A$26 million in funding that supports public services like health and education.
This record fine marks a troubling period for Australia’s fourth-largest bank, which has faced 11 civil penalty proceedings since 2016. The fallout from the bond deal has also contributed to the bank being required to hold more capital in reserve than its peers. The announcement compounds recent challenges for new CEO Nuno Matos, who just last week announced 3,500 job cuts in an effort to improve profitability.
In response to the penalties, ANZ Chair Paul O’Sullivan issued an unreserved apology, acknowledging the bank had let its customers down and must make significant changes to how it operates. As part of the settlement, ANZ has offered to repay the A$10 million it earned from the controversial bond deal, though it disputes the calculated cost to the government. The bank has not participated in a government bond issuance since the incident over two years ago.
