ASIC controls on NAB compliance
National Australia Bank has provided the Australian Securities and Investments Commission (ASIC) with an enforceable undertaking to improve key systems and controls in its financial services business following the foreign exchange options trading scandal that rocked the bank earlier this year.
The undertaking follows ASIC surveillance into NAB’s reported losses of $360 million as a result of the unauthorised trading in foreign exchange options, and a subsequent APRA report on risk management and prudential issues.
The undertaking requires NAB to submit a series of reports to independent auditors to enable ASIC to monitor its compliance with its obligations under its Australian Financial Services Licence (AFSL) as well as the Corporations Act.
The reports and audits are intended to ensure NAB informs ASIC of any AFSL breaches, and implements adequate procedures to properly recruit, supervise and train its financial services staff.
ASIC chairman Jeffrey Lucy said he “looked forward to seeing the improvements that this enforceable undertaking will bring to the National’s financial services business”.
An ASIC investigation is continuing into possible contraventions of the Corporations Act by NAB employees involved in the foreign exchange options trading.
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