Aussie bank’s $3.4bn slag fund is off the rails
AUSTRALIA’S FINANCIAL REVENUE SLAG FUND HAS been fined $3,4bn after failing to disclose the value of a $3bn slags fund in an audit.
The Australian Securities and Investments Commission (ASIC) said the fund was “disgraceful” and had breached its rules.
“There is no excuse for this.
There is no place for this,” ASIC chairman Andrew Gaughan said.
ASIC’s investigation found that a $1.5bn slagging fund was used to slag almost $3 billion of assets from banks and other institutions.
Its findings were made public on Wednesday, but the ACCC’s director of regulatory enforcement, Neil Mitchell, said the watchdog would continue to investigate the fund.
Mitchell said the ACCEC had requested the fund’s owner, State Bank of Australia, disclose the values of the slag slag and related asset-backed securities.
”As soon as we have received a copy of the fund, the ACCIC will conduct a full review of the operation and will consider whether to take further action,” Mitchell said.
Inspector General of Financial Markets and Markets Victoria, Neil MacDougall, said ASIC was aware of the matter and had contacted the fund and the regulator.”
It is our view that the bank’s failure to disclose this is extremely regrettable, given that it is clearly in breach of the requirements of ASICs code of conduct,” MacDougal said.
The ACCC said the bank had been fined the equivalent of $7m in fees and penalties and was required to repay the amount.
The regulator also said the slagging of the Fund was a ”serious breach” of the rules.”
The regulator is committed to ensuring that all participants in the Australian financial market operate in accordance with ASIC’s code of practice and the rules governing the market,” ASIC said in a statement.
Australian banks and funds had been under scrutiny since the $1bn slagged by the fund in June.