AMP Life and AMP Capital fined
AMP Life and AMP Capital have been fined $275,500 and $250,500 respectively, in relation to trade reporting rules regarding derivative transaction and position information to derivative trade repositories.
The Australian Securities and Investments Commission (ASIC) said it believed that both AMP Life and AMP Capital breached the ASIC Derivative Transactions (Reporting) Rules 2013 between August, 2015 and February, 2018 and between March, 2016 and September, 2018, respectively.
According to the regulator, AMP Life failed to:
- Report information about 940 transactions on 113 separate business days;
- Correctly report collateral information about 9,224 transactions on 388 separate business days; and
- Take all reasonable steps to ensure that BNP Paribas Fund Services Australasia Pty Ltd (BNP), on behalf of AMP Life, was reporting information that was complete, accurate and current.
ASIC also believed there were reasonable grounds to believe that AMP Capital:
- Report information about 140 transactions on 34 separate business days;
- Correctly report collateral information about 9,999 transactions on 417 separate business days; and
- Take all reasonable steps to ensure that BNP, on behalf of AMP Capital, was reporting information that was complete, accurate and current.
ASIC also said that breaches arose out of administrative failings.
“However, the duration of each of the reporting failures was significant and the time taken to identify them shows serious inadequacies in AMP Life's and AMP Capital's processes and procedures for monitoring the accuracy of their reporting,” the regulator said.
“AMP Life and AMP Capital have taken, and are continuing to take, actions to remedy their reporting failures and are implementing systems and processes aimed at preventing future failures of this kind.”
ASIC rules required counterparties to report derivative transaction and position information to derivative trade repositories as this reporting was necessary to enhance the transparency of transaction information available to regulators, promote financial stability and support the detection and prevention of market abuse.
AUTHOR
Oksana Patron
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
