Sydney, 15 September 2025 — Australia & New Zealand Banking Group (ANZ) has acknowledged “unconscionable conduct” in its bond trading operations and has agreed to pay a A$240 million (about US$159.5 million) penalty to settle multiple regulatory investigations, the Australian Securities & Investments Commission (ASIC) announced on Monday.
The settlement, which requires approval from the Federal Court, resolves five separate probes into ANZ’s Australian Markets and Retail divisions. The misconduct involves market manipulation during a government bond issuance, as well as misleading reporting of bond trading data.
ANZ’s Chief Executive Officer, Nuno Matos, admitted there were significant failures in managing retail risk and compliance. He said the bank has identified internal issues in its controls and intends to implement sweeping reforms. Part of this includes a Root Cause Remediation Plan that the bank will submit to the Australian Prudential Regulation Authority (APRA) by 30 September 2025. ANZ also expects to set aside around A$150 million for implementation of those reforms during fiscal year 2026, funding the effort by reducing investment in other projects.
The ASIC’s allegations include claims that ANZ, while handling a government bond deal, overstated its bond trading volumes by “tens of billions of dollars” in its data submissions. The bank’s internal reviews have led to the dismissal or suspension of certain traders, with the bank acknowledging that elements of its business culture and procedures fell short in managing non-financial risk.
These revelations hit as ANZ faces increasing scrutiny from regulators over loss of public trust and emerging expectations for stronger oversight in banking conduct. ASIC’s chair emphasized that this case underscores an urgent need for accountability in financial conduct.
