ASIC scrutinising big instos
Australia's major institutions are under scrutiny by the Australian Securities and Investments Commission (ASIC) over their handling of financial market benchmarks with three having already been the subject of enforceable undertakings.
The regulator has today issued a report on financial benchmarks in which it has openly declared that it is "investigating a range of financial institutions to determine whether or not there has been benchmark-related misconduct in Australia's financial markets".
"Our inquiries are still underway and, given the size and complexity of the relevant markets, will take some time to complete," the report said.
"We are looking at the activity of Australian financial institutions domestically and overseas, as well as foreign financial institutions that are active in Australia."
The report said that, in particular, ASIC would examine whether financial institutions have failed to adequately supervise and control the day-to-day operations and conduct of traders and submitters.
"We will also investigate whether senior managers were aware of, or were complacent about, any conduct issues that may have been present," it said.
The report said ASIC was examining relevant documents, including trading data, phone recordings, emails and chat messages, and was conducting voluntary interviews and compulsory examinations of numerous individuals, up to senior management level
"We are also requiring a number of financial institutions to undertake their own reviews and/or to provide to ASIC records of reviews already conducted."
The ASIC report said the regulator had accepted enforceable undertakings from UBS AG, BNP Paribas, and The Royal Bank of Scotland in relation to financial benchmarks.
"Each institution reported to ASIC that it had found evidence of conduct seeking to influence its Bank Bill Swap Rate (BBSW) submissions based on how the submission may have benefited its derivatives positions," the report said.
"ASIC held concerns that such conduct may have contravened s912A of the Corporations Act relating to AFS licensees' general obligations."
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.
