Latest Products

ASIC accepts enforceable undertaking from ANZ

Monday 9 April 2018

Last week, the Australian Securities and Investments Commission (ASIC) accepted an enforceable undertaking (EU) from the Australia and New Zealand Bank (ANZ).

The EU is connected the fact that, from 2006 – 2013, banks failed to provide annual reviews for more than 10, 000 Prime Access customers.

“Our report into Fees For No Service in October 2016 identified the major financial institutions' systemic failures in this area, which required affected customers to be fairly compensated and to be provided with the services that they have paid for,” said Deputy ASIC Chair, Peter Kell
Kell added that improved systems and procedures were critical “…to ensure the breach of trust could not re-occur.”

This EU comes in the shadow of the Royal Commission and the recent AFR Banking and Wealth Summit.

At the AFR event, ASIC Chairman, James Shipton, spoke to the issues of the banks and noted financial services are in a position where they have to rebuild trust and trust-worthiness. 

This means taking the ethical approach and considering what role the financial services need to play in the community.

The EU
ANZ’s EU includes:
  • The payment of r community benefit totalling $3 million; 
  • The provision of an audited attestation from ANZ senior management to ensure 'reasonable assurance' that the bank has, since 2014, provided documented annual reviews to customers who were entitled to such reviews; and
  • The further provision of audited attestations from ANZ senior management as to the improvements the bank has made to its compliance systems and processes, and that the design and implementation of those systems and processes will seek to ensure documented annual reviews that are provided in accordance with the ANZ Prime Access package.
ASIC said the bank has also agreed to compensate the affected Prime Access customers.