June 28, 2018 / 8:00 AM / 3 months ago

Australian regulator accepts tighter forex undertaking for NAB

June 28 (Reuters) - Australia’s securities regulator on Thursday said it accepted a variation to a 2016 enforceable undertaking by National Australia Bank Ltd regarding the lender’s wholesale spot foreign exchange business.

The amendment adds further undertakings after an independent expert’s report said “there appears to have been no comprehensive risk assessment” across the business, according to a statement by the Australian Securities and Investments Commission.

NAB, along with Commonwealth Bank of Australia, Australia and New Zealand Banking Group Ltd and Westpac Banking Corp, has been under scrutiny by a Royal Commission into the financial services sector, the biggest contributor to Australia’s GDP.

The scrutiny follows widespread instances of misconduct among these lenders and other firms in the industry.

NAB said in early May that it was looking to exit part of its wealth management arm by 2019 as it continues to simplify its business structure. The company posted a sharp drop in six-month cash profit on job cut-linked restructuring costs at the time.

NAB spokespersons were not immediately available for comment on Thursday. (Reporting by Aaron Saldanha in Bengaluru; Editing by Vyas Mohan)

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