ANZ faces ASIC procedures on placement

ASIC has commenced civil penalty proceedings against ANZ

The corporate regulator has initiated a civil sanction process against ANZ for accusations that the bank breached its continuing disclosure obligations during a capital raising in 2015.

ASIC alleges that ANZ, which has already been accused of criminal offenses related to parenting, should have informed the market that the investment banks involved in the agreement took almost a third of the shares in the placement.

"ANZ will defend these accusations," the bank said in a statement to ASX on Friday.

"ANZ is not aware of a precedent for a listed entity to disclose the absorption of shares by subscribers in a capital placement."

ASIC alleges that ANZ should have informed investors that Deutsche Bank, Citigroup and JPMorgan absorbed approximately 25.5 million of the 80.8 million shares placed.

But ANZ's chief risk officer, Kevin Corbally, denied any misconduct.

"ANZ's disclosure in connection with the placement was in accordance with its ASX disclosure obligations, as well as market practice," Corbally said.

The collection of 2015 was in response to the fact that the main banks must keep more money in reserve against their mortgage loans.

But ANZ's collection, which included the placement and a $ 500 million share purchase plan for ordinary shareholders, took the market by surprise because then CEO Mike Smith had suggested it would not be necessary.

The shares of ANZ suffered their biggest one-day drop in nearly seven years after the announcement, and retail shareholders were angered by the preferential treatment granted to institutional investors.

The criminal cartel charges were established in June against ANZ, Deutsche and Citigroup, as well as the executives of each institution, following an investigation by the Australian Competition and Consumption Commission.