05 June 2020

ANZ Bank New Zealand Limited

FMA proceedings against ANZ for false and misleading representations over credit card insurance charges.

ANZ Bank New Zealand Limited charged 307 customers for card repayment insurance (CCRI) policies that offered no cover. The FMA brought proceedings against ANZ, alleging the bank had breached the fair dealing provisions of the Financial Markets Conduct (FMC) Act. ANZ was ordered by the High Court to pay a $280,000 civil penalty.

The FMA proceedings contained two causes of action. Firstly, that ANZ issued duplicate CCRI policies to some customers, which provided no additional benefits or cover, and charged premiums on those policies, during the period April 2014 - November 2019. Secondly, ANZ issued and failed to cancel CCRI policies for ineligible customers, also charging premiums on those policies, during the period 1 April 2014 – May 2018.

March 2021 - Auckland High Court ordered ANZ to pay a $280,000 civil penalty for breaching the FMC Act by making misleading representations to 307 of its customers. Justice Muir noted the importance of deterrence in the civil penalty regime, noting: “that it creates a strong incentive for financial institutions, and particularly large and well-resourced ones like trading banks, to maintain adequate processes and systems.”

Download High Court judgment ANZ bank PDF

June 2020 – FMA files High Court proceedings against ANZ alleging the bank charged some customers for CCRI policies that offered those customers no cover. FMA claims ANZ contravened section 22 of the FMC Act by making false and misleading representations about the cover of the policies.

The New Zealand Commerce Commission and FMA investigated alleged contraventions of the Fair Trading Act 1986 by ANZ in relation to the marketing, promotion and sale of interest rate swaps to rural customers from 2005 to 2009.

28 May 2015

The High court judgment resulted in the following declaration:

Between on or about July 2005, and 31 March 2009, ANZ Bank New Zealand Limited breached s 9 of the Fair Trading Act 1986, in that, being in trade, it engaged in conduct that was misleading in relation to some of the customers listed in Schedule 1 to the Statement of Claim, in that it understated some of the risks and/or overstated some of the benefits of interest rate swap arrangements to those customers.

Download High court judgment in the case between Commerce Commission and ANZ Bank New Zealand Limited, 28 May 2015 PDF.

3 December 2014

The Commerce Commission has reached a $19 million settlement with ANZ Bank New Zealand Limited (ANZ) in relation to the marketing, promotion and sale of interest rate swaps to rural customers between 2005 and 2009.

Consequently, FMA has also agreed to resolve issues by the settlement agreement and enforceable undertaking.

Download CC settlement agreement PDF.

Download FMA settlement agreement PDF.

ANZ Bank New Zealand Ltd challenged the FMA's decision to disclose to third parties, documents the FMA has obtained from ANZ through the exercise of its statutory powers.

12 April 2019- Supreme Court

The applications for leave to appeal are dismissed. Costs of $3,500 are awarded to the respondent(FMA).

Download the Supreme Court of New Zealand judgment between ANZ and FMA on 12 April 2019 PDF.

Download the Court of Appeal unredacted version of the judgment between ANZ and FMA on 12 April 2019 PDF.

5 March 2019- Court of Appeal

The High Court decision was overturned by the Court of Appeal. The Court of Appeal held that there was a “good deal of evidence indicating that the first purpose was a genuine purpose”.

ANZ sought leave to appeal the High court decision to the Supreme Court and to maintain confidentiality over the judgment.

Download the Court of Appeal judgement between FMA and ANZ 5 March 2019 PDF.

17 April 2018- High court

The High Court held for ANZ that the proposed disclosure was outside the powers of the FMA. It did not consider that there were legitimate reasons for disclosure.

Download the judgment between FMA and ANZ PDF 17 April 2018 PDF.

November 2017

The High Court heard a judicial review application and breach of confidence claim by ANZ against the FMA, concerning the interpretation of our powers under s59 of the Financial Markets Act 2011.