JP Morgan's Priestley steps down from ASX, Future Fund amid cartel case 'distraction'
The former chief executive of JP Morgan in Australia, Rob Priestley, is resigning from the boards of the ASX and the Future Fund, saying the cartel case over ANZ's capital raising may become a "distraction".
JP Morgan, which Mr Priestley now chairs, was one of the joint lead managers on the $2.5 billion capital raising by ANZ in 2015, alongside Citi and Deutsche Bank, which has led to criminal charges against six senior bankers.
An Australian Competition and Consumer Commission (ACCC) investigation this month led to criminal charges being laid against ANZ, Citi, Deutsche Bank and six senior executives, including former Australian bosses of Citi and Deutsche Bank.
The banks are denying the allegations, while JP Morgan is believed to have immunity, and has declined to comment on the matter. Mr Priestly was not charged and there is no suggestion he was knowingly involved in the alleged cartel between the banks.
Mr Priestley said in a statement on Tuesday that there were limits to what he could discuss publicly on the matter, and he had decided the right move was to step aside.
"I am very conscious of the unique role that the ASX plays at the heart of Australia’s financial marketplace and with all of its participants. There has been considerable interest in the ACCC banking matter, which may become a potential distraction for the ASX and my board colleagues," Mr Priestley said.
“It is likely that this matter will take some time to resolve, and as there are limits to the information that can be discussed at this time, I think the right course of action in these circumstances is to step aside from the ASX board to allow the situation to be fully resolved. I look forward to the time when all of the facts and circumstances relevant to this matter are clarified.
"Given my decision to step aside from the ASX board, I think it is also appropriate that I step aside from the Future Fund board of guardians."
ASX chairman Rick Holliday-Smith said the company understood the "difficulty" of Mr Priestley's position. “Rob’s decision to step down in these circumstances demonstrates his commitment to the highest standards of corporate governance," Mr Holliday-Smith said.
Mr Priestley will continue as chairman of JP Morgan, and the US bank released a statement supporting the financial services veteran.
"Rob is highly respected globally as a genuine and trusted leader with the highest levels of integrity. He has been an outstanding ambassador for JP Morgan for nearly 25 years and we look forward to his continued contribution as chairman of Australia and New Zealand," JP Morgan said.