(15 April 2008 – Australia) ANZ has ordered a review of its securities lending business in the wake of the collapse of stockbroker Opes Prime.ANZ chief executive officer, Mike Smith said that he would lead a review into ANZ’s involvement in securities lending and the Opes Prime Group.
Smith will be assisted in the review by David Hisco, managing director, Esanda and Chris Page, head of Risk Asia Pacific.
Smith will also be assisted by an outside party, in David Crawford, chairman of Fosters and Lend Lease who has a background in financial services and insolvency administration.
The review will focus ANZ’s involvement in securities lending, where stock pledged as collateral by Opes customers was on-lent to ANZ or other institutions, as well as any breaches of policy by bank employees in dealing with clients including Opes.
Smith said that the review will be done to ensure that processes and practices meet the ethical, risk management and regulatory standards required.
Smith will be working closely with regulators and report on conclusions and actions of the review.