NAB enters enforceable undertaking with ASIC

Monday, 23 December 2013

NAB has entered into an enforceable undertaking with ASIC following an inquiry by ASIC into ASX pre-open orders placed during 2012 by a third party equity index arbitrage business who was contracted to trade on NAB’s behalf. NAB has worked closely with ASIC throughout its investigation and takes its regulatory compliance obligations very seriously. NAB does not condone or accept any activity that undermines or has the potential to undermine market integrity. This equity index arbitrage business formed only a very small part of NAB’s overall trading activity, and NAB terminated the operations of this third party business in late 2012. As part of the enforceable undertaking, NAB has undertaken to develop additional risk monitoring and control systems specifically addressed to where it uses direct market access arrangements with external brokers. The issues that have been identified do not raise concerns as to NAB’s broader trading activity or control environment. NAB will also be making a $2 million voluntary contribution to a financial literacy program to be selected by the Board of Financial Literacy Australia Limited.

Media contact:

Brian Walsh M: +61 (0) 411 22 7585 Fiona Macrae M: +61 (0) 412 693 182