The ANZ Bank is in court accused of failing to comply with its continuous disclosure obligations

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  • The ANZ Bank now faces a second front relating to questions over a $2.5 billion capital raising.
  • This times ASIC has accused the ANZ of failing to comply with its continuous disclosure obligations.
  • The institutional share placement in August 2015 is also subject of separate criminal cartel charges brought by the ACCC.

Corporate regulator ASIC has started civil proceedings against the ANZ, accusing the bank of failing to comply with its continuous disclosure obligations relating to a $2.5 billion capital raising.

The institutional share placement in August 2015 is also subject of separate action by the consumer watchdog, the ACCC.

The ANZ, Citigroup Global Markets Australia, and Deutsche Bank Australia have been charged with criminal cartel offences following an investigation by the ACCC.

Senior executives at all three, including two former CEOs, also face criminal charges.

In the latest Federal Court action, ASIC alleges ANZ should have advised the market that the joint lead managers took up about 25.5 million shares of the placement.

The ANZ says it will defend the allegations.

“The shares in question represented less than 1% of the shares on issue at the time and were taken up by the joint lead managers in circumstances where the book indicated the placement was covered at 103%,” the bank says.

“ANZ is not aware of a precedent for a listed entity to disclose the take up of shares by underwriters in an equity placement.”

ANZ Chief Risk Officer Kevin Corbally says the ANZ’s disclosure in relation to the placement was in accordance with its ASX disclosure obligations as well as market practice.

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