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ANZ confirms ASIC investigation

ANZ has confirmed the Australian Securities and Investments Commission (ASIC) is investigating its execution of a 2023 bond issuance of 10-year Treasury Bonds by the Australian Office of Financial Management (AOFM).

ANZ said it was appointed by the AOFM to act as a risk manager in relation to the issuance of the Treasury Bonds.

The bank said it understands ASIC is investigating suspected contraventions of several provisions of the ASIC Act and the Corporations Act but did not elaborate.

"ANZ takes compliance with its regulatory obligations seriously and is co-operating fully with ASIC," ANZ said.

The confirmation comes after the Australian Financial Review revealed sources close to the matter claimed ASIC began investigating after the AOFM made a complaint.

The sources which spoke to the AFR claimed the AOFM became concerned about the way in which some of its debt had been sold and believed ANZ staff involved in the transactions may have been acting inappropriately.

This marks the second time in a decade ANZ's fixed income team has been accused of improperly profiteering.

ANZ is one of only a handful of banks that can act as an intermediary between the AOFM and superannuation funds, insurers, central banks, and others seeking to buy Australian debt.

Read more: ANZASICAOFMAustralian Financial ReviewAustralian Office of Financial ManagementAustralian Securities and Investments Commission