(Reuters) -Australia's ANZ Group admitted to "unconscionable conduct" in its bond trading services and agreed to pay A$240 million ($159.5 million) in penalties to resolve multiple investigations, the securities regulator said on Monday.

The settlement between ANZ and the Australian Securities and Investments Commission requires Federal Court approval and would resolve five matters across the bank's Australian Markets and Retail businesses that were subject to separate regulatory probes.

The regulatory violations centre on ANZ staff manipulating markets in a government bond issuance, as well as misreporting of bond trading data, the regulator said.

"It's clear we have issues within Australia Retail, particularly around our management of non-financial risk," ANZ Chief Executive Nuno Matos said. "This is why we are making changes to this business to improve its focus on core priorities and to make it safer for customers."

ANZ confirmed it will submit its Root Cause Remediation Plan to the Australian Prudential Regulation Authority on September 30, 2025, as required by court undertaking. The bank expects to spend approximately A$150 million implementing the plan in fiscal 2026, funded by de-prioritizing other initiatives.

The bank previously fired or suspended traders from its markets business over allegations of inappropriate behaviour in media reports.

($1 = 1.5047 Australian dollars)

(Reporting by Roushni Nair in Bengaluru; Editing by Lisa Shumaker)