The Australian Securities and Investments Commission (ASIC) has accepted an enforceable undertaking (EU) from the Commonwealth Bank of Australia (CBA) following their participation in the setting of the Bank Bill Swap Rate (BBSW), slapping $20 million worth of fines on the bank.
CBA has undertaken to pay $15 million to the community, and $5 million towards ASIC’s investigation and legal costs.
The bank would also engage an independent expert to assess the changes they’ve made to their policies, procedures, systems, controls, training, guidance and framework for the monitoring and supervision of employees and trading in Prime Bank Bills.
The EU comes after CBA admitted to the Federal Court that they sought to affect where the BBSW set on five occasions between January and June, 2012, and copped a $5 million penalty.
The bank also admitted it failed to do all things necessary to ensure that it provided financial services honestly and fairly, and that its traders were adequately trained.
Justice Beach of the Federal Court said: “…that sum together with the other payments all totalling $25 million should be an adequate denouncement of and deterrence against the unacceptable trading behaviour of individuals within CBA that ought to have known better and a bank that ought to have better supervised its personnel.”