ANZ has come under fire yet again for cultural failings and poor risk management. Attwood Marshall Lawyers Commercial Litigation Partner Charles Lethbridge and Lawyer James Griffin take a closer look at the latest allegations and set out what options are available for mistreated bank customers.
A major review of ANZ’s institutional trading division has uncovered some serious allegations of bullying and senior management inaction, with suggestions that a lack of proper risk management and accountability have also seeped into the retail banking arm.
Independent consultancy Oliver Wyman found that gaps in ANZ’s non-financial risk management allowed “unacceptable and inappropriate behaviour” to persist, warning that “weaknesses in culture, leadership and infrastructure could lead to material issues in the future.”
The bank has been no stranger to misconduct and scandal. The Banking Code Compliance Committee investigated and publicly sanctioned ANZ only last year for charging fees and interest to deceased estate accounts.
In 2023, the bank faced accusations of irresponsible lending and also faced a $10 million penalty over its non-compliant Home Loan Introducer Program and mishandling of sensitive customer information.
The bank is also being investigated by the Australian Securities and Investments Commission over its handling of a $14 billion government bond issuance in 2023, after trading irregularities were reported in the press.
The Oliver Wyman report has also led to regulatory action. The Australian Prudential Regulation Authority announced that ANZ will be required to carry out a group wide review into the root causes and behavioural drivers of its “persistent weaknesses,” and implement a remediation program to address them.
For consumers, this action reinforces the importance of feeling empowered to speak up and demand better standards from their financial institutions. Customers who believe they have been mistreated by their bank should know they have rights and there are avenues for their complaints, with possible redress and compensation available.
The repercussions
According to the latest revelations, ANZ’s Global Markets business lacked monitoring and remediation processes that meant reports of heavy drinking during work hours, obnoxious behaviour towards colleagues and other inappropriate workplace behaviour went unaddressed.
In addition to ordering an internal review and possible remediation program, APRA has also increased ANZ’s capital buffer requirements to mitigate risks. The markets division must now reserve an extra $250 million on its balance sheet, bringing the total amount of its additional capital requirements to $1 billion.
APRA said it had “long-standing concerns” over ANZ’s risk management and compliance weaknesses, which “appear across ANZ more broadly.”
“Despite frequent engagement with ANZ since 2018 on APRA’s concerns over NFR [non-financial risk] management practices and risk culture, and notwithstanding changes and evolutions of ANZ’s remediation programs, ANZ is yet to demonstrate consistently that it is able to proactively identify and mitigate NFR issues,” the regulator said.
Not good enough
For consumers, cases like this remind us why we need our banks to operate at the highest ethical standards, and to have robust risk management and oversight systems in place. Regulators take enforcement action against failures in this space because they know there can be widespread consequences when things go wrong.
The financial services industry continues to suffer a significant trust deficit in the eyes of the community, and for good reason. Banks act in their best interests – not that of their customers. The fact regulators and major banks have disregarded or delayed implementing the majority of the recommendations made by 2019’s Royal Commission into misconduct in the Banking, Superannuation and Financial Services Industry is a huge disappointment and setback for all consumers.
How to avoid becoming a victim of bad banking behaviour
With our financial services industry continuing to be scrutinized for mismanagement and misconduct, it is incumbent on consumers to monitor and seek external advice before engaging with potentially, life altering financial decisions.
Whilst many issues have been addressed by the Banking Royal Commission, too few of the 76 recommendations have been adopted into legislature or compliance codes. Thankfully, many of the recommended consumer protections will be enhanced by amendments to the Banking Code of Practice, which took effect in February 2025.
However, it is wise to remember people breach Banking Codes of Conduct and legislation. That happens every day. If you want to protect yourself, you need to be on top of your own finances and it’s as simple as checking your bank statements, asking questions at your bank, or having an independent financial advisor.
If you believe that your accounts have been handled inappropriately or that your bank has not met its legal obligations, you have the right to make a complaint directly to the financial institution or the Australian Financial Complaints Authority (AFCA).
AFCA is an independent body that helps resolve disputes between consumers and financial services firms.
Our Commercial Litigation team have been working actively since the Royal Commission to assist consumers in lodging complaints with financial institutions regarding both historic and current irresponsible lending and breaches of lending obligations.
Complaints handled by Attwood Marshall Lawyers have dated back to conduct which occurred in the 1990s to as early as this year.
Attwood Marshall Lawyers – helping consumers protect their rights against irresponsible lending practices
If you are entangled in a dispute with your bank over irresponsible lending, loan repayments, their handling of hardship notices, excessive fees, unsuitable products, or bad financial advice, our banking dispute lawyers can ensure you understand your rights and guide you in resolving the matter as quickly and efficiently as possible.
Our Commercial Litigation team can determine if you are eligible for compensation for any financial loss you have suffered. In some circumstances, we can accept your case on a “No Win, No Fee” basis* (approved cases only where a veritable financial hardship exists, and claims have a reasonable expectation of success).
To discuss your specific matter, please call our Commercial Litigation Department Manager, Georgia Trapp, on direct line 0498 499 122, email gtrapp@attwoodmarshall.com.au or free call 1800 621 071 at any time.
