The Commonwealth Bank has reached an in-principle agreement to settle civil proceedings brought by ASIC in January over manipulation of the bank bill swap rate (BBSW).
CBA has agreed to an in-principle settlement with ASIC in civil proceedings relating to alleged manipulation of the BBSW in 2012.
The bank has acknowledged that in the course of trading on the BBSW market in Australia on five occasions between February and June 2012, CBA attempted to engage in unconscionable conduct in breach of the ASIC Act.
CBA will also acknowledge it did not have adequate policies and systems in place to monitor the trading and communications of its staff in order to prevent that conduct from occurring.
Subject to Federal Court approval of the settlement, CBA has agreed to pay a $5-million penalty, a payment of $15 million to a financial consumer protection fund and a $5-million payment towards ASIC's costs of the litigation and its investigation.
CBA will also enter into an EU with ASIC under which an independent expert will be appointed to review controls, policies, training and monitoring in relation to its BBSW business.
CBA and ASIC will make an application to the Federal Court for approval of the settlement.
While the troubled wealth giant managed to retain its vertically integrated model following the royal commission, analysts fear the group an...
Labor has continued to attack the government over its implementation of the royal commission despite not having produced a full response to ...
The Australian Financial Complaints Authority has announced that from July, it will start to accept legacy financial complaints. ...