ANZ finds management weakness
(22 August 2008 – Australia) ANZ has released the findings of its Review Committee which examined the Bank’s involvement in Securities Lending and its relationship with Broker clients including Opes Prime.
ANZ chief executive officer Mike Smith announced in April that he would lead a review of the issues surrounding ANZ’s Securities Lending business.
Smith said that the review provided an open and transparent account of ANZ’s involvement in Securities Lending, to examine accountabilities within ANZ and to identify the remedial actions necessary.
Review Committee found weaknesses in the management and oversight of the Equity Finance business within ANZ’s Securities Lending unit, Smith added.
This meant that ANZ did not adequately identify and manage the range of risks which arose from the operation of a business of this nature.
ANZ has developed a comprehensive 13-point remediation plan to address all the management, control and accountability issues identified in the report.
The remediation in place will seek to address the short comings in management and control identified, particularly within Risk Management and the Institutional division.
The Review Committee identified breaches of ANZ’s Code of Conduct by two employees who will leave ANZ.
Oversights of the Equity Finance business have resulted in actions being taken in ANZ, including formal notes placed on employment records, cuts to remuneration and the departure from ANZ of six managers and executives.
Smith said that the review provided an open and transparent account of ANZ’s involvement in Securities Lending, to examine accountabilities within ANZ and to identify the remedial actions necessary.
Review Committee found weaknesses in the management and oversight of the Equity Finance business within ANZ’s Securities Lending unit, Smith added.
This meant that ANZ did not adequately identify and manage the range of risks which arose from the operation of a business of this nature.
ANZ has developed a comprehensive 13-point remediation plan to address all the management, control and accountability issues identified in the report.
The remediation in place will seek to address the short comings in management and control identified, particularly within Risk Management and the Institutional division.
The Review Committee identified breaches of ANZ’s Code of Conduct by two employees who will leave ANZ.
Oversights of the Equity Finance business have resulted in actions being taken in ANZ, including formal notes placed on employment records, cuts to remuneration and the departure from ANZ of six managers and executives.
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