ANZ Fined a Record A$250 Million for Bond Deal Mismanagement

Australia's corporate watchdog fined ANZ Group A$250 million for mishandling a A$14 billion bond deal and other corporate misconduct. The penalized cases reveal systemic failures within the bank's culture. This constitutes the largest single penalty by ASIC against any entity, underscoring the gravity of ANZ's violations.

ANZ Group has been hit with a record A$250 million fine after a federal court found the bank guilty of mishandling a massive A$14 billion government bond deal, as well as other systemic failures that adversely affected taxpayers and retail customers. Australia's corporate watchdog, the Australian Securities and Investments Commission (ASIC), announced the penalty on Friday, marking the largest single penalty it has ever imposed against a single entity.

The substantial penalty spans four separate cases of misconduct in ANZ's institutional and retail banking operations. Since 2016, the bank has faced 11 civil penalty proceedings, with findings highlighting a corporate culture that stifled staff from voicing concerns and presented red tape obstacles. ANZ's share price saw a slight increase to A$36.08, in line with a 0.4% gain on the ASX200 benchmark index.

In particular, ANZ was fined A$135 million for breaches related to its institutional markets and inaccurate secondary bond market reporting, A$80 million for unconscionable conduct, A$40 million for mishandling customer hardship notices, another A$40 million for misleading savings-rate disclosures, and A$35 million for failing to refund fees to deceased customers. The ASIC's Chair, Joe Longo, emphasized the need for ANZ to urgently address its risk and compliance culture to rebuild public trust.

(With inputs from agencies.)