In a statement, the corporate regulator alleged that the Commonwealth Bank had engaged in “unconscionable conduct” to affect the bank bill swap reference rate (BBSW), which is the primary interest rate benchmark used in Australia.
ASIC has already commenced proceedings against ANZ, NAB and Westpac, with the former two reaching a settlement, while Westpac’s case is still being seen.
The regulator alleges that the Commonwealth Bank’s actions, which occurred between January and October 2012, were intended to “maximise its profits or minimise its losses” in a way that was detrimental to those holding positions opposite to the bank’s.
“ASIC alleges it was unconscionable for CBA to trade in this way, and also to enter into products priced off the BBSW without disclosing its trading practices to its customers and counterparties,” the regulator said in a statement.
“ASIC also alleges that CBA’s trading created an artificial price and a false appearance with respect to the market for some of these products.”
The regulator is seeking declarations that the bank “contravened s12CA, s12CB, s12DA, 12DB and s12DF of the Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act), s912A(1), s1041A, s1041B and s1041H of the Corporations Act 2001 (Cth)”.
“Further, ASIC has sought from the court pecuniary penalties against CBA and an order requiring CBA to implement a compliance program,” the regulator said.
I seem to recall the Royal Commission cannot look into any issue which is currently subject to another inquiry, or legal action. I guess CBA may have preferred this in the courts, rather than in front of the royal commission!
Update: Management today released a press release saying it’s not them it’s “individuals” and blamed everyone else, whilst tainting all those in the industry with the same brush. The solution proposed is to join an un-professional association and Management are encouraging and calling for their staff to have a degree. Furthermore the un-professional association welcomed those new fee paying members with membership paid by the CBA with a 10% discount and supported their actions.
problem solved.
Here they go again. Maybe they should have a permanent court booking till all the dust settles and then we have an R C on the way- maybe more bookings needed for court time.
I’m a member of the public and I’m just wondering if I see a CFP member will their advice be influenced by these people?
To quote the FPA professional partner program. “You work in partnership with the FPA to shape the future direction of the profession through a close working relationship with the FPA executive team”
Nice business partner FPA. classy.