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Insider Trading

Friday 7 May 2021

 

Westpac could be in trouble with insider trading and unconscionable for their role in interest swap rate back in 2016. 

 

This week Australian Securities and Investments Commission (ASIC) announced that it has commenced civil proceedings against Westpac for its role in the interest rate swap transaction.

 

An official statement played a part in the $12 billion interest swap rate along with AustralianSuper and IFM entities. The regulator highlighted transaction was related to the majority stake in electricity provider Ausgrid.

 

The regulator further alleged that the member of the big four failed “to provide to the Consortium full and informed disclosure about its intention to pre-position its trading books prior to and with notice of the execution of the swap transaction, amounted to unconscionable conduct.”

 

In an official statement, the regulator indicated that they are “ASIC is seeking declarations and pecuniary penalties for Westpac’s alleged contraventions s1043A [Prohibited conduct by a person in possession of inside information] of the Corporations Act and s12CB [ Unconscionable conduct about financial services] of the ASIC Act, a declaration for Westpac’s alleged contravention of s912A of the Corporations Act, and ancillary orders.”