ANZ has announced that the Federal Court of Australia has approved its settlement with the Australian Securities and Investments Commission (ASIC). The agreement resolves court action concerning unlicensed third parties who provided home loan application documents to ANZ lenders.
In documents submitted to the Court, ANZ admitted to violations of section 31 of the National Consumer Credit Protection Act. These violations pertain to 50 home loan applications involving two unlicensed third parties between 2017 and 2018 under its Home Loan Introducer Program. Additionally, ANZ acknowledged breaches of general conduct obligations under the Credit Act from 2015 to 2018.
ANZ stated it has worked closely with ASIC throughout this process, is nearing completion of a customer remediation program, and has implemented changes in its home loan procedures.
As part of the settlement terms, ANZ agreed that its Customer Fairness Advisor will review its Home Loan Introducer Program. The bank also consented to pay a $10 million civil penalty along with covering ASIC's costs.
The financial implications related to remediation efforts, as well as civil penalties and cost orders, are reportedly accounted for by existing provisions.
"Approved for distribution by ANZ’s Continuous Disclosure Committee."