ANZ Fined A$250 Million for Misconduct in Government Bond Deal

ANZ Group has been fined A$250 million by an Australian Federal Court for misconduct in handling a A$14 billion government bond deal. The penalties, ordered by the Australian Securities and Investments Commission (ASIC), stem from four separate court cases and include actions affecting taxpayers and retail customers.

The Australian Federal Court has imposed A$250 million in penalties on ANZ Group for misconduct involving a A$14 billion government bond deal, according to a statement by the Australian Securities and Investments Commission (ASIC) on Friday.

The fine comprises four separate court proceedings, which include misconduct in both institutional and retail banking divisions disclosed last September. A significant portion of the penalties, A$135 million, is tied to institutional and market misconduct, notably due to the mishandling of the bond deal and inaccurate reporting of secondary bond market turnover data. Among these penalties is a record A$80 million for unconscionable conduct.

Justice Jonathan Beach increased the penalty by A$10 million for ANZ's inaccurate reporting of market turnover data, resulting in a total fine of A$50 million for this specific charge. ASIC Chair Joe Longo emphasized the substantial penalties highlight the seriousness of ANZ's actions and their widespread implications, urging the bank to prioritize overhauling its non-financial risk management strategies to better serve customers and the public.