Update on investigations into Australian Markets business

ANZ Group Holdings Limited
9/833 Collins Street Docklands Victoria 3008 Australia
ABN 16 659 510 791

News Release
For Release: 25 July 2024

Update on investigations into Australian Markets business

ANZ today provided an update on the progress of its ongoing investigations into potential
trading and conduct issues in parts of its Markets business.

The update concerns three separate but related matters: data reporting processes;
allegations around a 2023 bond transaction; and conduct and behavioural matters primarily
within its Sydney dealing room.

ANZ Chief Executive Shayne Elliott said: “With the assistance of external counsel, we are
investigating these issues with the urgency expected and the Group Board continues to
supervise this work closely.

“We have been very clear with our people. Where we find any evidence of wrongdoing,
those involved will be held accountable and action will be taken. The Board will also lead a
process to ensure consequences will be applied to senior executives, both past and present,
including myself, where appropriate” Mr Elliott said.

Data reporting

ANZ advised the Australian Office of Financial Management (AOFM) in August 2023 it had
submitted incorrect monthly secondary bond turnover data for the FY22-23 year. This error
came to light before the required year-end sign-off on the accuracy of the data supplied.

Data errors were caused by a range of issues including process and data extraction errors
on ANZ’s part. This resulted in the incorrect inclusion of transactions that should have been
omitted as well as double counting of some transactions.

ANZ acknowledges this is an unacceptable failure. It is also investigating whether it should
have reported this issue to the Australian Securities and Investments Commission (ASIC)
earlier than it did and will engage with ASIC further on this matter.

Mr Elliott said: “We have also reviewed recent data submissions provided to relevant
customers and although there will be ongoing work, we don’t believe we have material
issues with the data we have submitted.

“However, as an additional precaution, I have asked our internal audit team to review the
governance and control frameworks supporting the production of
similar submissions to
customers and report its findings to the Board.

“I have personally apologised to the Chief Executive at AOFM for ANZ’s failures. We are
significantly enhancing our governance process around this data, including building a
separate validation tool and increasing training for relevant staff. We had already
strengthened our breach reporting process through system improvements,” Mr Elliott said.

ASIC investigation into AOFM transaction

As previously advised, ASIC is investigating ANZ’s execution of a 2023 issuance of 10-year
Treasury Bonds by AOFM. ANZ is cooperating fully with ASIC’s investigation which is
expected to take some months.

ANZ’s external counsel has engaged independent experts to analyse trading data in relation
to this issue. This independent experts’ work remains ongoing.

ANZ’s own preliminary analysis has not identified any evidence of market manipulation.
ANZ, however, does not have all the information that ASIC has, and this position will be
reviewed in coming months.

Conduct and behaviour issues

In addition to our own internal investigation, ANZ has engaged specialist external counsel to
investigate allegations of inappropriate conduct and behaviour primarily within the Sydney
dealing room.

While the external investigation remains ongoing, there have been employment outcomes
for several employees including suspension, termination and a formal warning. Management
changes in the Sydney dealing room have also been made.

Mr Elliott added: “My immediate priority is to ensure the investigations are completed in a
timely manner, that action is taken against any individuals who have not met the required
standards and that the necessary steps are taken to ensure these conduct failures do not
re-occur. Importantly, we are not limiting our reviews and will address any conduct that is
not in line with our expectations,” Mr Elliott said.

For media enquiries contact:

Stephen Ries
ANZ Communications
Tel: +61-409655-551


For analyst enquiries contact:

Jill Campbell
GGM Investor Relations
Tel: +61-3-8654-7749



Approved for distribution by ANZ’s Continuous Disclosure Committee