K62 Finance

CBA exposed to flood of claims

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Original article by James Eyers, Phillip Coorey
The Australian Financial Review – Page: 1-Jun : 4-Jul-14

Commonwealth Bank of Australia (CBA) has announced a new compensation program. CEO Ian Narev said on 3 July 2014 that the bank is determined to rectify the problem of inappropriate advice being given to clients by the bank’s financial planning subsidiaries. Under the new program, customers who received advice between 1 September 2003 and 1 July 2012 can apply to the bank for an internal assessment

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH FINANCIAL PLANNING LIMITED, FINANCIAL WISDOM LIMITED, MAURICE BLACKBURN PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE, FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED

RBA’s Stevens talks down dollar, again

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Original article by Jacob Greber, Vesna Poljak
The Australian Financial Review – Page: 1-Dec : 4-Jul-14

Reserve Bank of Australia governor Glenn Stevens has signalled his willingness to use interest rates to reduce the value of the Australian dollar, which he believes is excessive. His concerns about the negative impact of the high foreign exchange rate on the economy may result in another cut to interest rates. Stevens’s remarks promptly pushed the Australian dollar down to $US0.9362 on 3 July 2014

CORPORATES
RESERVE BANK OF AUSTRALIA, INTERNATIONAL MONETARY FUND, BANK FOR INTERNATIONAL SETTLEMENTS, AUSTRALIA. DEPT OF THE TREASURY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

China offers chance to take stake in banks

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Original article by Angus Grigg, Lisa Murray
The Australian Financial Review – Page: 8 : 30-Jun-14

China is offering Australian banks the opportunity to invest in its five largest banks. During a visit to China in late June 2014, Federal Treasurer Joe Hockey was informed that the Chinese Government planned to further sell down its holdings in the five lenders. They are Industrial & Commercial Bank of China, Bank of China, Bank of Communications, China Construction Bank and Agricultural Bank of China

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, INDUSTRIAL AND COMMERCIAL BANK OF CHINA, BANK OF CHINA GROUP, BANK OF COMMUNICATIONS, CHINA CONSTRUCTION BANK, AGRICULTURAL BANK OF CHINA, CHINA. NATIONAL DEVELOPMENT REFORM COMMISSION, CHINA. MINISTRY OF FINANCE, THE GOLDMAN SACHS GROUP INCORPORATED, PEKING UNIVERSITY, CHINA CENTRE FOR ECONOMIC RESEARCH, UBS AG, ROYAL BANK OF SCOTLAND GROUP PLC, CITIGROUP INCORPORATED, BANK OF AMERICA CORPORATION, KING AND WOOD MALLESONS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CHINA BANKING REGULATORY COMMISSION

CBA rip-off no setback to lighter rules

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Original article by Patrick Durkin, Jonathan Shapiro
The Australian Financial Review – Page: 3 : 30-Jun-14

The Commonwealth Bank of Australia scandal will not deter the Federal Government from its plan to lighten regulation of the financial planning sector. Federal Finance Minister Mathias Cormann said that regulation should be dropped if it increases the cost of financial advice without increasing consumer protection. However, Industry Super Australia CEO David Whiteley argued the matter shows that the Government should abandon its plan to change the Future of Financial Advice laws

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF FINANCE, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MAURICE BLACKBURN PTY LTD

CommBank covered up scandal

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Original article by James Eyers, Clancy Yeates
The Australian Financial Review – Page: Jan-45 : 27-Jun-14

A Senate report is critical of Commonwealth Bank of Australia and the Australian Securities & Investments Commission (ASIC). The findings by the Senate economics committee were tabled on 26 June 2014. The report called for a royal commission, saying that the bank tried to avoid investigation of its financial planning subsidiary. The regulator was criticised for its slow action on the issue. The report made 61 recommendations for ASIC and the financial planning industry

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

Online star back from the brink

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Original article by Damon Kitney
The Australian – Page: 19/22 : 27-Jun-14

Australian entrepreneur Patrick Grove does not like his wealth to be examined by the media. In 2013, he appeared on the "Young Rich List" of "BRW" with a wealth of $A95 million. Grove says he is motivated by the desire to build new businesses rather than to make money. His Catcha Group now controls online assets worth more than $US300 million ($A318.8 milion), including stakes in three Australian-listed companies – iCar, iProperty and iBuy

CORPORATES
CATCHA GROUP, CATCHA MEDIA BERHAD, ICAR ASIA LIMITED – ASX ICQ, IPROPERTY GROUP LIMITED – ASX IPP, IBUY GROUP LIMITED – ASX IBY, THORNEY INVESTMENT GROUP AUSTRALIA PTY LTD, FRONTIER DIGITAL VENTURES, NASDAQ, ANDERSEN, ASX LIMITED – ASX ASX

Canadian bank axes analysts in Newcrest fiasco

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Original article by Anthony Klan
The Australian – Page: 21 : 26-Jun-14

Newcrest Mining has agreed to pay a penalty of $A1.2m for selectively briefing analysts in late May 2013. The Australian Securities & Investments Commission told the Federal Court that the company breached its continuous disclosure obligations by not informing the wider market as well of its downgraded gold output figures, but the analysts were not to blame. However, Geoff Breen and Michael Orphanides as well as head of research Peter Main departed Royal Bank of Canada (RBC) in mid-2013, soon after it received the inside knowledge from Newcrest. The investment bank has declined to comment

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, ROYAL BANK OF CANADA, RBC CAPITAL MARKETS, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, CREDIT SUISSE AG, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, COLONIAL HOLDING COMPANY LIMITED – ASX CNG, MACQUARIE BANK LIMITED – ASX MBL

Nimble start-up challenges the big four

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Original article by Damon Kitney
The Australian – Page: 21 : 26-Jun-14

Technology company Nimble has raised $A10 million in new funding from Acorn Capital and Monash Investors. It specialises in providing small personal loans to creditworthy borrowers. It uses data analytics to reduce approval times. Australia’s big four banks are now under competitive pressure from small companies that use new technology to offer services such as payments, short-term lending, and peer-to-peer lending

CORPORATES
NIMBLE PTY LTD, ISELECT LIMITED – ASX ISU, ACORN CAPITAL INVESTMENT FUND LIMITED – ASX ACQ, MONASH INVESTORS PTY LTD, SEEK LIMITED – ASX SEK, SQUARE PEG CAPITAL PTY LTD, FACEBOOK INCORPORATED, SOCIETYONE AUSTRALIA PTY LTD, REINVENTURE GROUP PTY LTD

Australian rally on Fed statements could be short-lived

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Original article by Sally Rose
The Australian Financial Review – Page: 13 and 22 : 20-Jun-14

Australia’s S&P/ASX 200 rose by 1.6 per cent on 19 June 2014, and the All Ordinaries Index was up 1.5 per cent. The bullish sentiment was prompted by indications that US interest rates are set to remain at a historic low in the near-term. Meanwhile, the Australian dollar rose to $US0.9423 and the yield on 10-year government bonds fell by two per cent. George Clapham of Arnhem Investment Management cautions that economic data in China will remain the key influence on the Australian sharemarket

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, ARNHEM INVESTMENT MANAGEMENT PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA, BANK OF ENGLAND, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, WILSON HTM LIMITED, MLC LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, EUROPEAN CENTRAL BANK

Ban on financial fees

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 and 4 : 20-Jun-14

The Australian Government will wind back key measures of the Future of Financial Advice reforms, including the requirement that financial planners must act in the best interest of clients. Planners will also be barred from receiving up-front or trailing commissions for providing general advice to clients, while the requirement that clients must "opt-in" to receive financial advice will also be scrapped

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIAN BROADCASTING CORPORATION, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN CONSUMERS’ ASSOCIATION, NATIONAL SENIORS AUSTRALIA LIMITED, COUNCIL ON THE AGEING