Court approves ANZ and ASIC settlement

Australia and New Zealand Banking Group Limited ABN 11 005 357 522
News Release
For release: 10 November 2017

Court approves ANZ and ASIC settlement over bank
trading and the Bank Bill Swap Rate

ANZ today announced the Federal Court of Australia has approved its settlement with the
Australian Securities and Investments Commission (ASIC) in relation to attempted
unconscionable conduct and also compliance controls in the Australian interbank BBSW
market.

In a Statement of Agreed Facts lodged with the Federal Court, ANZ has acknowledged that,
in the course of trading on the BBSW market, a small number of traders attempted to
engage in unconscionable conduct on ten dates between September 2010 and February
2012. ANZ also did not have in place adequate policies and systems to monitor trading and
communications of its BBSW traders.

There has been no allegation by ASIC of collusion between ANZ and other institutions.

ANZ Chief Risk Officer Nigel Williams said: “We know our customers and the community
expect better from us and we apologise for both the attempted unconscionable conduct and
our inability to prevent or detect the behaviour.”

Since 2015, ANZ has significantly changed the way it manages its Markets business,
including new policies and systems as well as introducing extensive training for all its
traders.

As part of the resolution, ANZ has agreed to a $10 million penalty. ANZ has also agreed to
make a payment of $20 million to a Financial Consumer Protection Fund and a $20 million
payment toward ASIC’s costs.

ANZ has also agreed to enter into an enforceable undertaking with ASIC, where an
independent expert will be appointed to review controls, policies, training and monitoring of
BBSW trading.

As previously announced, the financial impact of the agreement was reflected in the 2017
Financial Year results and was largely covered by the provisioning held as at 31 March 2017.

For media enquiries contact:

Stephen Ries, +61 409 655 551