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Australia’s decision to quietly drop cartel charges against banks and individuals looks like a welcome return to common sense. But without any clarity on the reasons for the decision it leaves issuers and arrangers walking on eggshells.

When Australia and New Zealand Banking Group was left with A$800m of unsold shares after an undersubscribed placement in 2015, it understandably wanted to avoid dumping them on the market and tanking the stock. It then worked with its underwriters – which included Citigroup and Deutsche Bank – to ensure an orderly aftermarket.

So far so sensible. But the Australian Competition and Consumer Commission decided nearly three years later to level cartel charges against the three institutions, as well as several individuals, sending shockwaves through the market. (JP Morgan was also an underwriter but avoided charges by cooperating with the investigation.)

By definition, limiting the supply of shares is anti-competitive, but it’s hard to say who was hurt by the decision to sell them slowly – let alone why that action could deserve up to 10 years in prison.

If anything, a controlled sale protected the interests of ANZ’s existing shareholders, from institutions to pension holders, who would have seen the value of their holdings plunge if the arrangers had launched a heavily discounted secondary offering.

Federal prosecutors announced on Friday that they had dropped the charges against Citi and Deutsche, saying that there was little chance of securing convictions. The withdrawal before that of charges against ANZ, its treasurer, and Citi’s former Australia head had already implied that the ACCC had over-reached.

The decision to drop the case will come as a relief for the banks and individuals that were under investigation, but it won’t on its own restore the status quo.

If Australian authorities want a well-functioning market they need to make clear what is and isn’t allowed.

If they don’t, ECM bankers will remain unsure whether they could be breaking the law next time they get stuck with an unsold share position.