ANZ fined $900k over continuous disclosure breach

The news: ANZ has been ordered to pay a $900,000 penalty for failing in its continuous disclosure obligations during an institutional share placement.

The numbers: The Federal Court found ANZ failed to notify the Australian Securities Exchange that between $754 million and $790 million of the $2.5 billion in shares offered in the placement were to be snapped up by the bank's underwriters. The court action was launched by ASIC.

The context: The penalty was near the maximum $1 million fine available for a single breach of continuous disclosure obligations by a company in 2015. ASIC deputy chair Karen Chester said it was a landmark case for the regulator, and noted the same breach could today attract a penalty of anywhere between $15 million and $780 million.

What they said: "The penalty and remarks from the Judge today are a clear and resolute message to ANZ and the market that this conduct was very serious," Chester said in a statement. "It also confirms that a significant take-up of shares by underwriters (in a share placement) must be disclosed to the market and investors."