K62 Finance

ASIC chair vows tougher action

roymorgansocial Leave a comment

Original article by Andrew White
The Australian – Page: 19 & 30 : 18-May-18

Australian ­Securities & Investments Commission chairman James Shipton has confirmed that he is seeking additional funding from the Federal Government, after it backtracked on a decision to reduce ASIC’s budget. Shipton also says ASIC will fully utilise the new powers that it has been granted by the government, with the financial services sector to be a particular focus. He says the actions of financial services providers have created a "trust deficit", and the sector must work hard to overcome this.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AMP LIMITED – ASX AMP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Surging bond yields to test stock bulls’ mettle

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 30 : 18-May-18

The yield on US 10-year government bonds peaked at a new seven-year high of 3.12 per cent in Asian trading on 17 May. Given the low level of sharemarket volatility at present, there is the potential for a correction, as was the case in February when the bond yield rose to 2.9 per cent. A growing number of market watchers are advising investors to retain overweight positions with regard to equities in the current environment, while Ric Deverell of Macquarie Group expects the 10-year bond yield to rise toward four per cent in the medium-term.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, STANDARD AND POOR’S 500 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, MORGAN STANLEY AND COMPANY INCORPORATED, STANDARD AND POOR’S ASX 200 INDEX, TELSTRA CORPORATION LIMITED – ASX TLS, TREASURY WINE ESTATES LIMITED – ASX TWE, BRAMBLES LIMITED – ASX BXB, CSL LIMITED – ASX CSL, BLOOMBERG LP, EUROPEAN CENTRAL BANK

Super funds slam short term banks

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 17 & 21 : 17-May-18

Institutional investors want directors and executives of Australia’s banks to be more accountable in the wake of the banking royal commission. AustralianSuper’s chief investment officer Mark Delaney says the major banks have been too focused on short-term profits, although he notes that this has changed in the last two years. UniSuper chief investment officer John Pearce says the findings of two recent Australian Prudential Regulation Authority investigations have been more damning than the royal commission’s revelations.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIANSUPER PTY LTD, UNISUPER LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, IFM INVESTORS PTY LTD, FIRST STATE SUPER, REST SUPER PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AMP LIMITED – ASX AMP, COCA-COLA AMATIL LIMITED – ASX CCL, BLOOMBERG LP

Bond proxies and dollar feel pinch as US yields surge to seven-year high

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 17 & 28 : 17-May-18

The Australian dollar has fallen below $US0.75 after the yield on US 10-year government bonds peaked at 3.09 per cent, the highest level in seven years. This in turn prompted a sell-off of Australian-listed bond proxy stocks on 16 May, despite the local sharemarket posting a slight gain for the day. Hasan Tevfik of Credit Suisse expects global bond yields to rise further, and notes that Australian government bonds have a lower risk profile at present due to factors such as the nation’s low official interest rates.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, PACIFIC INVESTMENT MANAGEMENT COMPANY LLC, VANGUARD INVESTMENTS AUSTRALIA LIMITED, AUSTRALIANSUPER PTY LTD, BLOOMBERG LP, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, STANDARD AND POOR’S ASX 200 INDEX, TRANSURBAN GROUP LIMITED – ASX TCL, SYDNEY AIRPORT – ASX SYD, SPARK INFRASTRUCTURE GROUP – ASX SKI, APA GROUP – ASX APA, MIRVAC GROUP – ASX MGR, DEXUS RENTS TRUST, GPT GROUP – ASX GPT

Fears of big job losses from inquiry fallout

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 20 : 15-May-18

Automation has already put around 50,000 financial services jobs at risk, and job losses in the sector may increase in the wake of the banking royal commission. Sally Auld of JPMorgan says the loss of jobs as a result of the inquiry could be greater than those shed during the last financial crisis. Tommy Wu of IBISWorld notes that the banking sector’s revenue has fallen by over $A10 billion in the last five years, and it could fall even further as a result of the royal commission.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, JP MORGAN AUSTRALIA LIMITED, IBISWORLD PTY LTD, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, UBS HOLDINGS PTY LTD, RICE WARNER ACTUARIES PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED, MACQUARIE GROUP LIMITED – ASX MQG

CommBank finance boss Jesudason jumps ship

roymorgansocial Leave a comment

Original article by James Eyers, Jonathan Shapiro, Will Willitts
The Australian Financial Review – Page: 11 & 14 : 15-May-18

The Commonwealth Bank of Australia has named Alan Docherty as its acting CFO following the sudden resignation of Rob Jesudason after less than a year in the role. Docherty is currently the CFO of the institutional banking and markets division, and he joined CBA in 2003. Jesudason’s departure for a role in Hong Kong is the latest setback for CEO Matt Comyn, with six key executives resigning since he succeeded Ian Narev. Jesudason has expressed interest in becoming CEO, but sources have indicated that he was not in contention.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BLOCK.ONE, CREDIT SUISSE AG, JP MORGAN AND COMPANY INCORPORATED, BARCLAYS BANK PLC, GE CAPITAL CORPORATION, McKINSEY AND COMPANY

Commonwealth Bank admits it broke law over fees

roymorgansocial Leave a comment

Original article by Sarah Danckert, Clancy Yeates
The Sydney Morning Herald – Page: 3 : 11-May-18

The Commonwealth Bank of Australia has issued a statement acknowledging that its financial planners had breached the Corporations Act by charging fees for services that were not provided. However, the bank has rejected several of the open findings of the senior counsel assisting the banking royal commission with regard to its financial planning division. Meanwhile, Westpac has rejected all of the open findings of the royal commission regarding its financial planning business.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COUNT FINANCIAL LIMITED, COMMONWEALTH FINANCIAL PLANNING LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RI ADVICE GROUP PTY LTD, M3 FINANCIAL, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, DOVER FINANCIAL ADVISERS PTY LTD

CBA falls as legal costs take toll on profit

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 19 & 24 : 10-May-18

The Commonwealth Bank of Australia has posted an underlying cash net profit of $A2.35bn for the March quarter, which is nine per cent lower than previously. CBA has advised of an increase in home loan, personal loan and credit card arrears during the period, while its expenses rose by three per cent. Meanwhile, CBA has agreed to pay fines totalling $A25m to settle allegations that it manipulated the bank bill swap rate.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WESTPAC BANKING CORPORATION – ASX WBC, DIGITAL FINANCE ANALYTICS, FEDERAL COURT OF AUSTRALIA

Westpac anger at royal commission tactics

roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 1 & 14 : 8-May-18

Westpac’s shares rose $A0.24 to $A29.34 on 7 May after the bank reported an interim cash profit of $A4.25 billion, up six per cent. In releasing its latest results, Westpac took the opportunity to criticise the banking royal commission’s release of documents that had been critical of its lending standards. CEO Brian Hartzer also took the opportunity to restate the bank’s commitment to its BT Financial Group wealth business, despite other banks having indicated their intention to exit the wealth management sector.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, BT FINANCIAL GROUP PTY LTD, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, ALPHINITY INVESTMENT MANAGEMENT PTY LTD

ANZ scraps product-linked bonus score

roymorgansocial Leave a comment

Original article by Alice Uribe
The Australian Financial Review – Page: 15 & 19 : 7-May-18

The ANZ Bank has announced that it will sack financial planners who twice fail a compliance audit, as the banking royal commission continues to reverberate among Australia’s 25,000 financial planners. ANZ has also announced that it will abolish product-linked bonuses for its financial planners, with CEO Shayne Elliott stating that the problems that the royal commission has revealed regarding financial planners have been created by a structure that rewards them for selling products.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, IOOF HOLDINGS LIMITED – ASX IFL