National Australia Bank announced that it has agreed a settlement with the Australian Securities and Investments Commission of the Bank Bill Swap Rate legal action. The settlement is subject to Federal Court approval. The bank accepted that it did not meet the high standards of professional conduct that ASIC, the community and NAB expected of itself.
As per the terms, NAB will acknowledge breaches of its licence obligations under s912A of the Corporations Act and agree to an Enforceable Undertaking with ASIC. NAB has agreed to a $10 million penalty, which remains subject to Court approval, and to pay ASIC's costs of $20 million.
NAB will also make a donation of $20 million to a financial consumer protection fund nominated by ASIC. The impact of this settlement will be reflected in 2017 Financial Year.
Re-disseminated by The Asian Banker from Nasdaq