The Commonwealth Bank of Australia (CBA) has entered into enforceable undertakings and will pay $15 million to the benefit of the community.
Implemented under the Australian Securities and Investments Commission (ASIC), the enforceable undertakings came after the bank was found to have attempted to engage in unconscionable conduct in relation to the Bank Bill Swap Rate (BBWS).
As part of this undertaking, CBA will pay $15 million to be applied to the benefit of the community and $5 million towards ASIC’s investigation and legal costs. In addition, a pecuniary penalty of $5 million will be imposed.
Justice Beach of the Federal Court said that the CBA will pay a total of $25 million sum, which “should be an adequate denouncement of and deterrence against the unacceptable trading behaviours within CBA”.
Beach also notes CBA “ought to have known better” and that the bank should have better supervised its personnel to avoid the BBWS scandal.
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