ASIC and AFP investigating bank levy leak

ASIC and AFP investigating bank levy leak

The corporate regulator is working with the Australian Federal Police on an investigation into “suspicious trading” of major bank shares ahead of the announcement of the new bank levy in May’s federal budget.


ASIC officials confirmed to the Senate joint committee members on Friday that the regulator is conducting an inquiry into "suspicious trading" in conjunction with an AFP investigation into the leak of the bank levy prior to the release of the budget on 9 May.

In response to a question from Labor Senator and committee deputy chair Deborah O'Neill, ASIC commissioner Cathie Armour said the regulator is looking at trading in days before the release of the federal budget.

"As you can imagine, there is a high volume of activity in those stocks so it’s not a straightforward exercise," Ms Armour said.

"We are working together with the AFP and considering whether there was any information that was inappropriately shared with third parties before the announcement."

However, while ASIC is "making inquiries", there is no formal investigation underway as yet, according to ASIC senior executive leader for markets enforcement Sharon Concisom.

Ms Concisom said the ASIC investigation has included interviews, but has not resulted in the issuance of Section 19 notices, which compel people to co-operate with ASIC.

Such notices would require a formal investigation, which is not yet underway, she said.

ASIC chairman Greg Medcraft said it was important that the general public understood the regulator is looking into the matter seriously.

Mr Medcraft encouraged people with knowledge of the leaks to volunteer the information to the regulator.

"Come to us before we come to you," warned Mr Medcraft.

Read more:

Final CBA compensation report released

RBA backs new FX code of conduct

Calastone completes blockchain ‘proof-of-concept’

Netwealth director to reduce shareholding

MLC Private Equity appoints US head

 

 

ASIC and AFP investigating bank levy leak
AFP, ASIC, Australian Federal Police, leak, Greg Medcraft
ID logo
promoted stories

Appointments

Blake Briggs

FSC loses two senior policy managers

Tim Stewart

John Patrick Moorhead

AMP Capital appoints new CFO

Staff Reporter

Phoebe Ieong

BNY Mellon appoints head of distribution, APAC

Staff Reporter

Analysis

Doug Morris

What a blockchain-powered ASX should mean

Doug Morris

Lucy O’Carroll

Separating the signals from the noise

Lucy O’Carroll

Dan Bosscher

Could passive investing have structural issues?

Dan Bosscher