ANZ says markets valuation failure due to process, data extraction errors
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The news: ANZ has flagged an "unacceptable failure" amid investigations into its data reporting processes, allegations around a 2023 bond transaction, and conduct and behaviour matters within its Sydney dealing room.
The context: ANZ said it advised the Australian Office of Financial Management (AOFM) in August 2023 it had submitted incorrect monthly secondary bond turnover data for FY23, an error which the company said came to light before the required year-end sign-off on the accuracy of the data supplied.
The banking group noted that data errors were caused by a range of issues including process and data extraction errors on ANZ’s part. This resulted in the incorrect inclusion of transactions that should have been omitted as well as double counting of some transactions.
ANZ said it "acknowledges this is an unacceptable failure", while it also investigates whether it should have reported this issue to the Australian Securities and Investments Commission (ASIC) earlier than it did.
Meanwhile, ASIC is investigating ANZ’s execution of a 2023 issuance of 10-year Treasury Bonds by AOFM. ANZ said it is cooperating fully with ASIC’s investigation which is expected to take a number of months.
The bank said its own preliminary analysis "has not identified any evidence of market manipulation".
Elsewhere, in addition to its own internal investigation, ANZ has engaged specialist external counsel to investigate allegations of inappropriate conduct and behaviour primarily within its Sydney dealing room.
The company said that while the external investigation remains ongoing, several employees have been suspended, terminated and issued formal warnings. Management changes in the Sydney dealing room have also been made.
What the said: ANZ CEO Shayne Elliott said: "With the assistance of external counsel, we are investigating these issues with the urgency expected and the group board continues to supervise this work closely.
"We have been very clear with our people. Where we find any evidence of wrongdoing, those involved will be held accountable and action will be taken.
"The board will also lead a process to ensure consequences will be applied to senior executives, both past and present, including myself, where appropriate."
The source: ASX announcement
