October 20, 2021
Markets

ASIC commences insider trading civil proceedings against Westpac

The Australian Securities and Investments Commission (ASIC) has commenced civil proceedings against Westpac for insider trading, unconscionable conduct and breaches of its Australian financial services licensee (AFSL) obligations, related to the bank’s role in executing a $12 billion interest rate swap transaction with AustralianSuper and a group of IFM entities.

The transaction occurred on 20 October, 2016, and was associated with the privatisation of a majority stake in the electricity provider Ausgrid by the NSW Government and was the largest rate swap transaction executed in one tranche in Australian financial market history.

At about 7am on 20 October, the consortium signed an agreement with the NSW Government for the acquisition of Ausgrid.

ASIC alleged that by about 8:30am on 20 October 2016, Westpac…

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