ANZ has reached an agreement with the Australian Securities and Investments Commission (ASIC) to resolve five regulatory matters involving its Australian Markets and Australia Retail businesses. The settlement, which is subject to Federal Court approval, will see ANZ pay a total of $240 million in penalties.
The penalties include $85 million related to ANZ’s role as duration manager during a 2023 issuance of 10-year Treasury Bonds by the Australian Office of Financial Management (AOFM). ANZ will also pay $40 million for submitting inaccurate monthly secondary bond turnover data to the AOFM over nearly two years, making a false or misleading annual attestation regarding that data, and failing to report these inaccuracies to ASIC. Additional penalties include $40 million for not paying acquisition bonus interest on certain Online Saver accounts and displaying incorrect rates, $40 million for breaches in handling customer hardship notices, and $35 million for failures concerning deceased estates.
ANZ Chairman Paul O’Sullivan stated: “While we have worked hard to get regulatory certainty on these matters, the reality is we made mistakes that have had a significant impact on customers. On behalf of ANZ, I apologise and assure our customers we have taken the necessary action, including holding relevant executives accountable.”
Chief Executive Officer Nuno Matos added: “The failings outlined are simply not good enough and they reinforce the case for change. It is my expectation that we see measurable improvements across the bank to better protect and care for our customers and to create a more sustainable business.”
Regarding its role as duration manager, ANZ noted that ASIC did not allege market manipulation or over-hedging. All trading was conducted as risk hedging related to this transaction. ANZ maintains that no loss was caused to the Commonwealth from its actions but acknowledged communication could have been better. As a goodwill gesture, ANZ has offered to pay the AOFM the revenue earned from its role as duration manager.
O’Sullivan continued: “While ASIC has not alleged that ANZ engaged in market manipulation, it’s clear we have not met the standards expected of us. We have apologised to the AOFM for the inadequate communication on this transaction and offered to pay the AOFM the revenue ANZ earned as duration manager.
“The Board has driven comprehensive accountability reviews in relation to the Markets issues, which have resulted in significant reductions in remuneration for certain current and former executives. More than 50 accountability reviews have been completed, with the outcomes of the remaining few reviews expected to be determined in coming weeks. We will also ensure that there is further accountability for the Markets and Australia Retail matters as part of this year’s executive remuneration review process.”
Commenting on issues within Australia Retail, Matos said: “Unfortunately, some of our failings occurred when our customers were at their most vulnerable. For this we are deeply sorry, and we are making changes to better support our customers when they need us most. We have in place customer remediation programs for the issues announced today.
“It’s clear we have issues within Australia Retail, particularly around our management of non-financial risk (NFR). This is why we are making changes to this business to improve its focus on core priorities and to make it safer for customers.
“We have fast-tracked work to significantly improve our management of non-financial risk across the ANZ Group. My team is heavily engaged in this work, while Les Vance’s recent appointment to lead our NFR program has strengthened our leadership in this space,” Matos concluded.
ANZ has set up an ASIC Matters Resolution Program within Australia Retail aimed at meeting commitments made with ASIC through centralized governance and oversight frameworks. The program covers improvements related both directly covered by today’s agreement—such as Online Saver products, hardship processes, and deceased estates—as well as breach reporting, event management, customer remediation, and complaints handling. Promontory has been appointed as an independent expert reviewer for this program.
Additionally, ANZ will submit its Root Cause Remediation Plan (RCRP) by September 30th, 2025 under requirements set by a Court Enforceable Undertaking with APRA. The bank expects implementation costs around $150 million during FY26; other initiatives will be deprioritized accordingly.
An enterprise-wide independent review found persistent weaknesses in six key areas relating to non-financial risk management at ANZ: culture; capabilities & consequences; accountability; governance & reporting; policies & practices; prioritization & execution. Once approved by APRA, a summary of root causes identified will be published publicly.
Promontory will also provide independent assurance regarding progress against RCRP commitments with updates available online via anz.com.