Australian regulator fines ANZ $165 million for systemic misconduct

Dec 19 (Reuters) – An Australian regulator said on Friday that ANZ Group was fined A$250 million ($165.3 ​million) by a Federal Court for misconduct in ‌handling a A$14 billion government bond deal, as well other actions ‌that affected taxpayers and retail customers.

The Australian Securities and Investments Commission (ASIC) said the court has ordered the lender to pay a total of A$250 million in penalties, stemming ⁠from four separate ‌court proceedings across its institutional and retail banking divisions over misconduct disclosed in September.

Of the ‍total A$250 million fine, A$135 million relates to institutional and markets misconduct connected to the handling of a A$14 billion ​government bond deal and the inaccurate reporting of ‌secondary bond market turnover data, including a record A$80 million penalty for unconscionable conduct.

ANZ did not immediately respond to a Reuters’ request for comments.

Justice Jonathan Beach increased the penalty for ANZ’s inaccurate reporting of secondary bond market ⁠turnover data by A$10 million, ​bringing the fine for that ​misconduct to A$50 million, the securities regulator said.

ASIC Chair Joe Longo said the size of the ‍penalties underscored ⁠the seriousness of ANZ’s misconduct and its far-reaching consequences, adding that the bank must overhaul its non-financial ⁠risk management and prioritise the interests of customers and the public.

($1 = ‌1.5124 Australian dollars)

(Reporting by Roshan Thomas in ‌Bengaluru; Editing by Sherry Jacob-Phillips)