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CBA, NAB respond to enforceable undertakings

CBA and NAB have issued responses to the enforceable undertakings that ASIC announced yesterday, which follows concerns around the conduct of their wholesale spot foreign exchange businesses between 2008 and 2013.

Under the enforceable undertaking, both banks will be required to develop and implement changes to their systems and controls with regards to monitoring and communication in their foreign exchange businesses, ASIC said.

NAB Group chief risk officer David Gall said the bank acknowledged “that in some instances within our spot FX business we could have better trained our people and had more appropriate systems and processes in place”.

“We take our role in upholding high standards of professional conduct seriously. Core to our values and commitment to customers and the community is doing the right thing,” he said.

“The trust of our global spot foreign exchange clients, the majority of which are institutional investors, is crucial and it is a priority to improve our controls and risk management systems so that they can have confidence in doing business with us.”

The Commonwealth Bank said the enforceable undertaking would see an independent expert appointed to review changes made by the banks to improve the systems and controls they had in place.

Both banks said they had agreed to make a “voluntary contribution” of $2.5 million each, to go towards improving financial literacy within the aged care sector.