K62 Finance

Banks face stress test on climate

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Original article by Michael Roddan
The Australian – Page: 1 & 2 : 20-Dec-19

Australian financial services providers may be required to disclose their exposure to climate risks in their financial statements. It is amongst reforms that are likely to be implemented by the Australian Prudential Regulation Authority and the Reserve Bank of Australia, which include subjecting banks and insurance companies to stress-testing with regard to climate change-related risks. The reforms have been proposed by the Network of Central Banks & Supervisors for Greening the Financial System. The RBA has been a member of it since 2018, while APRA has observer status.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA, NETWORK OF CENTRAL BANKS AND SUPERVISORS FOR GREENING THE FINANCIAL SYSTEM

Bank stalled as ASIC demanded refunds

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Original article by Michael Roddan
The Australian – Page: 13 & 14 : 19-Dec-19

Court documents filed by the Australian Securities & Investments Commission show that National Australia Bank’s internal auditors had raised concerns about charging fees for services that were not provided in April 2016. NAB subsequently made a public admission about the practice, but ASIC executive Louise Macaulay told NAB in November 2017 that its customer remediation program was out of step with rival banks. ASIC subsequently rejected a number of proposed models for compensating NAB customers, while the bank continued to charge ongoing fees until February 2019.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Westpac faces class action over scandal

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Original article by Aleks Vickovich
The Australian Financial Review – Page: 14 & 19 : 19-Dec-19

Law firm Phi Finney McDonald has filed a class action lawsuit against Westpac on behalf of retail and institutional investors. The firm will allege amongst other things that Westpac breached its continuous disclosure obligations by failing to properly inform prospective investors about Austrac’s concerns regarding its compliance with anti-money laundering laws. The class action is open to investors who bought Westpac shares between 16 December 2013 and 19 November 2019.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, PHI FINNEY McDONALD PTY LTD, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, WOODSFORD LITIGATION FUNDING, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AMP LIMITED – ASX AMP, MAURICE BLACKBURN PTY LTD, IMF BENTHAM LIMITED – ASX IMF

RBA to wait and see before February rate cut

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Original article by David Rogers
The Australian – Page: 18 : 18-Dec-19

Financial markets have priced in a 62 per cent of an official interest rate cut in February, following the release of the federal government’s Mid-Year Economic and Fiscal Outlook. The minutes from the central bank’s latest board meeting indicate that it will assess the economic outlook before deciding whether to make any change to monetary policy at its first meeting for 2020. The minutes noted that some downside risks to the global economic outlook have receded in recent weeks.

CORPORATES
RESERVE BANK OF AUSTRALIA

NAB to face legal pain over fee rort

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Original article by Michael Roddan
The Australian – Page: 13 & 14 : 18-Dec-19

National Australia Bank’s annual general meeting on 18 December will be overshadowed by allegations that it engaged in unconscionable conduct. The Australian Securities & Investments Commission has filed a statement of claim in which it outlines some 8,700 instances in which NAB is alleged to have charged fees for services that were not provided between December 2013 and February 2019. Amongst other things, ASIC also alleges that NAB failed to issue adequate product disclosure statements. NAB has indicated that it has already paid $37.8m in compensation to customers who were affected by the fee-for-no-service scandal.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, AMP LIMITED – ASX AMP

Westpac faces Philippines probe

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Original article by Michael Roddan
The Australian – Page: 17 & 21 : 11-Dec-19

Westpac’s money-laundering scandal has deepened, with the allegations regarding payments linked to child exploitation to be investigated by regulators in The Philippines. The nation’s Justice Secretary Menardo Guevarra has indicated that its Inter-Agency Council Against Trafficking is investigation the allegations in partnership with anti-money-laundering agencies in both Australia and The Philippines. The scandal is likely to dominate Westpac’s annual meeting on 12 December.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, PHILIPPINES. DEPT OF JUSTICE, PHILIPPINES. ANTI-MONEY LAUNDERING COUNCIL, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

RBA chief has confidence in consumers

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Original article by David Rogers, James Glynn
The Australian – Page: 23 : 11-Dec-19

George Tharenou of UBS says the Reserve Bank of Australia is likely to reduce the cash rate twice in the first half of 2020, to a record low of 0.25 per cent. He adds that the federal government’s mid-year Budget update is unlikely to include any "material" fiscal stimulus. Meanwhile, RBA governor Philip Lowe concedes that it is taking longer than usual for consumers to spend the extra cash from the three interest rate cuts in 2019 and the federal government’s income tax offset. However, he expects consumer spending to increase.

CORPORATES
RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD

Westpac open to settlement

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Original article by Michael Roddan
The Australian – Page: 17 & 21 : 10-Dec-19

The Federal Court has been told that Westpac and Austrac could potentially finalise a statement of agreed facts with regard to the bank’s breach of anti-money laundering laws by late February. Westpac has also advised that it will not contest the bulk of the 23 million civil charges that it is facing, which could allow the case to be settled quickly. Westpac is also under scrutiny by the Australian Securities & Investments Commission and the Australian Prudential Regulation Authority, while the bank could face a board spill at its annual meeting.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, FEDERAL COURT OF AUSTRALIA

Banks struggle despite RBNZ retreat: analysts

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Original article by Cliona O’Dowd
The Australian – Page: 20 : 9-Dec-19

Jonathan Mott of UBS says the outlook for Australia’s banks remains "very challenging", despite the fact that they will be treated more favourably than expected under the Reserve Bank of New Zealand’s new capital requirements. The central bank will phase in the new capital rules over a longer time-frame, while the banks will able to hold a wider range of securities as tier-one capital. Several analysts expect the new capital rules to result in the banks receiving lower dividend payouts from their New Zealand subsidiaries.

CORPORATES
RESERVE BANK OF NEW ZEALAND, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CITIGROUP PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED

Humbled Westpac faces shareholder anger

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Original article by Glenda Korporaal
The Australian – Page: 17 & 20 : 9-Dec-19

Some 64 per cent of votes cast at Westpac’s 2018 annual meeting rejected its remuneration report. The bank is likely to incur a second ‘strike’ at its 2019 annual meeting on 12 December, while the re-election of director Peter Marriott is uncertain in the wake of the scandal over breaches of anti-money laundering laws. However, Westpac is likely to avoid a resolution calling for a board spill. The Australian Shareholders’ Association and proxy adviser ISS will vote against the remuneration report, although the ASA will oppose any push to spill the board.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, OWNERSHIP MATTERS PTY LTD, CGI GLASS LEWIS PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE