UBS Australia has agreed to review its internal processes, and make a $1 million voluntary contribution to financial literacy programs after staff attempted to manipulate a key interest rate.
The Swiss-based bank has agreed to an enforceable undertaking with Australia’s corporate regulator ASIC. UBS self-reported evidence that some staff were seeking to influence the Bank Bill Swap Rate.
The possible infraction was reported in July last year. The submissions to the rate setting process may have benefited UBS’ derivatives position. In February the bank withdrew from the panel that sets the rate.
A review, which UBS requested, found that any impact to the market was “insignificant” according to a statement released by ASIC.
The EU requires UBS to ensure its participation in relation to the setting of Australian interest rate benchmarks upholds the integrity and reliability of those benchmarks and are in accordance with its obligations under the Commodity Futures Trading Commission (CFTC) Orders.
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