The Commonwealth Bank (ASX:CBA) has paid a $100,000 fine to corporate regulator ASIC over its conduct during last year’s capital raising.
ASIC alleged that the bank failed to disclose important information before the placement was concluded, even though that information could have been an influencing factor in investors’ decisions to take part in the $2 billion capital raising.
CBA learned that its ratio of bad loans was likely to be higher than expected at around 3pm on December 16, ASIC alleged, but did not inform the market until 7:14pm. The bank informed the ASX it had concluded its capital raising at 7:10pm.
ASIC concluded that the disparity between the figures could amount to up to $800 million in revenue.
CBA CEO Ralph Norris said he was disappointed with the decision. “Loan impairment expense is a single line item in the group’s profit and loss statement and cannot be considered in isolation,” he said.
While he said the fine payment is not an admission that the bank contravened disclosure regulations, he added that the CBA will continue to review its continuous disclosure practices.
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