APRA to investigate all ADIs for breaches
TheAustralian Prudential Regulation Authority(APRA) has announced it will review the risk management practices of all authorised deposit-taking institutions (ADIs) with treasury functions.
The review will begin with the peak regulator undertaking a review of National Australia Bank’s risk management controls within its treasury division in light of this week’s highly publicised $180 million losses.
APRA will investigate the unauthorised trading in foreign exchange options activities that led to the losses and whether the Bank’s existing escalation procedures are effective.
The peak regulator will also look at the group’s controls in its treasury front and back offices, along with possible weaknesses in the design and implementation of the NAB’s internal control systems - including market risk management.
“From a prudential perspective, APRA has to ensure that any breakdown of controls and processes in this instance has been properly identified and that appropriate action has been taken by the institution in question to rectify the matter,” APRA’s deputy chairman Ross Jones says.
“APRA is in constant dialogue with the ADIs it regulates and does not have any specific concerns about individual institutions or the industry in general. However, both APRA and industry recognise the importance of reassuring the community and the industry review is part of that process,” Jones says.
Recommended for you
Global asset manager BlackRock has identified bringing private markets to the wealth channel as a key business area for the firm that could generate US$500 million in revenue in the future.
Flows into cash and fixed income ETFs soared in May, rising from $366 million in April to more than $1.3 billion, data from Betashares shows.
Quinbrook Infrastructure Partners has promoted its Australian head to the role of chief executive of the global investment manager.
UK-based fund manager Royal London Asset Management has appointed a Sydney-based head of regional sales as it embarks on a multiyear plan to expand its presence internationally.
