Appearing before the Senate Economics Legislation Committee last night, Chief Executive Officer of AOFM, Anna Hughes, tabled an opening statement with reference to the release of a Statement of Agreed Facts by ASIC and ANZ on 15 September 2025.
The statement revealed that ANZ acted unconscionably in its dealings with the AOFM while serving as the duration manager for a $14 billion syndicated bond issuance in April 2023. ANZ also incorrectly reported bond trading data to the AOFM over a two-year period, overstating volumes by tens of billions of dollars.
Ms Hughes said the findings had serious implications for ANZ’s participation in Commonwealth bond syndications.
“Given the nature of the findings, the AOFM will need to see a demonstrable change in the risk culture of ANZ before it can be considered for future syndications,” Ms Hughes said.
The AOFM has taken decisive action to protect the integrity of Commonwealth debt issuance, including:
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Excluding ANZ from participation in any further syndicated bond issuances since April 2023.
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Updated syndication processes to strengthen governance and risk management.
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Commencing a joint project with state borrowing authorities to standardise bank turnover reporting requirements across jurisdictions.
ANZ earned $9.98 million in revenue from its trading activities as duration manager and a $2.8 million fee as Joint Lead Manager of the syndicated bond deal. While ANZ has offered to pay an amount equal to the revenue it earned as duration manager, the Commonwealth has declined to accept any payment while the matter remains before the Federal Court.
ASIC and ANZ have jointly referred the matter to the Federal Court, recommending a combined penalty of $125 million for institutional and markets-related breaches, including $80 million for unconscionable conduct. Hearings are scheduled for 2 December 2025.
The AOFM will refrain from commenting further on the matter until court proceedings have concluded.
Related: AOFM’s Opening Statement to Senate Economics Legislation Committee
Media contact: AOFM Communications Team via enquiries@aofm.gov.au
