Westpac slammed with $3.3m fine for BBSW manipulation

westpac BBSW fine federal court financial planning ASIC australian securities and investments commission penalty misconduct

12 November 2018
| By Anastasia Santoreneos |
image
image
expand image

The Federal Court has ordered Westpac to pay a $3.3 million penalty for its involvement in setting the BBSW in 2010.

The order follows Justice Beach’s judgment in May that found the bank had traded on four occasions in 2010 with a dominant purpose of influencing yields of traded Prime Bank Bills and where the BBSW was set in a way that was favourable to its rate set exposure.

In his judgment, Justice Beach said the bank’s misconduct was serious and unacceptable, and that Westpac had not shown the contrition of other banks.

“Moreover, imposing the maximum penalty is the only step available to me to achieve specific and general deterrence,” said Beach. “The message that should be sent is that if you manipulate or attempt to manipulate key benchmark rates you are likely to have the maximum penalty imposed, whatever that is from time to time.”

The Court also ordered that an independent expert be appointed to review whether Westpac’s current systems, policies and procedures are appropriate, and to report back to the Australian Securities and Investments Commission within nine months.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

4 days 5 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 4 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

3 days 3 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 6 hours ago