ASIC accepts EU from BNP Paribas
BNP Paribas will make a voluntary contribution of $1 million to independent financial literacy projects after its enforceable undertaking (EU) was accepted by the corporate regulator.
The Australian Securities and Investments Commission (ASIC) has accepted an EU from BNP in relation to potential misconduct involving the Australian Bank Bill Swap Rate (BBSW).
The BBSW is the primary interest rate benchmark used in Australian financial markets, which — prior to 27 September 2013 — was calculated based on submissions made by up to 14 panel banks to the Australian Financial Markets Association (AFMA).
In November 2012 BNP found conduct between 2007 and 2010 that was indicative of seeking to influence its BBSW submissions, based on how the submissions may benefit BNP's derivatives positions.
BNP remained a member of the BBSW submissions panel until a new methodology for calculating the BBSW was implemented on 27 September 2013, according to ASIC.
"The EU requires BNP to ensure its participation in relation to the setting of Australian interest rate benchmarks upholds the integrity and reliability of those benchmarks," ASIC said.
At the regulator's request, BNP engaged an independent expert to conduct a review of BBSW submissions, which found that any market impact was not significant.
ASIC will continue to investigate the issue, but had noted BNP's full cooperation in relation to the reported conduct since November 2012.
Since mid-2012, ASIC has been undertaking inquiries of BBSW panel bank members in relation to the integrity of their past involvement in the BBSW submission process.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
