Compliance Corner - ASIC, CBA

Editorial Staff

12 July 2018

ASIC
(CBA) has entered into a court enforceable undertaking with ASIC in relation to its bank bill trading business and its participation in the setting of the Bank Bill Swap Rate (BBSW), a benchmark and reference interest rate in the Australian financial system.

As part of the undertaking, CBA will pay AU$15 million ($11.1 million) to be applied to the benefit of the community and AU$5 million towards ASIC’s investigation and legal costs.

CBA will also engage an independent expert to assess changes CBA has made (and will make) to its policies, procedures, systems, controls, training, guidance and framework for the monitoring and supervision of employees and trading in prime bank bills.

On 21 Jun, the Federal Court in Melbourne imposed pecuniary penalties totalling AU$5 million on CBA for attempting to engage in unconscionable conduct in relation to BBSW. CBA admitted to attempting to seek to affect where BBSW set on five occasions in the period 31 January 2012 to 15 June 2012.

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