CBA pays $20m in fines for BBSW

image
image
expand image

The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from the Commonwealth Bank of Australia (CBA) following their participation in the setting of the Bank Bill Swap Rate (BBSW), slapping $20 million worth of fines on the bank.

CBA has undertaken to pay $15 million to the community, and $5 million towards ASIC’s investigation and legal costs.

The bank would also engage an independent expert to assess the changes they’ve made to their policies, procedures, systems, controls, training, guidance and framework for the monitoring and supervision of employees and trading in Prime Bank Bills.

The EU comes after CBA admitted to the Federal Court that they sought to affect where the BBSW set on five occasions between January and June, 2012, and copped a $5 million penalty.

The bank also admitted it failed to do all things necessary to ensure that it provided financial services honestly and fairly, and that its traders were adequately trained.

Justice Beach of the Federal Court said: “that sum together with the other payments all totalling $25 million should be an adequate denouncement of and deterrence against the unacceptable trading behaviour of individuals within CBA that ought to have known better and a bank that ought to have better supervised its personnel.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 5 days 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....

18 hours ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 3 days ago