K63 Insurance and Superannuation Funds

Industry Funds satisfy top investors

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Original article by Roy Morgan
Market Research Update – Page: Online : 19-Jun-18

A Roy Morgan Single Source survey has found that industry superannuation funds had the highest level of customer satisfaction among Australians aged +14 with account balances of more than $5,000 in the six months to April 2018. Retail funds showed the highest relative performance among funds with less than $5,000, although these accounts only represent 0.1% of the monetary value of the super market. Industry funds also had the highest satisfaction among members with account balances of $700,000 or more. Among the top 15 funds, QSuper has the highest level of satisfaction (72.3%), followed by Unisuper (69.1%) and VicSuper (67.9%).

CORPORATES
ROY MORGAN LIMITED, QSUPER LIMITED, UNISUPER LIMITED, VICSUPER PTY LTD

AMP hit with fourth class action

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Original article by Michael Roddan
The Australian – Page: 23 : 8-Jun-18

Slater & Gordon is the latest law firm to formally file a class action lawsuit against wealth manager AMP in the wake of revelations that it charged clients for services that were not provided. Three other law firms have filed class actions to date, while Maurice Blackburn has yet to do so. Meanwhile, Kieren Chidgey of UBS estimates that financial planners who are affiliated with AMP and ANZ Bank are currently the least qualified to meet the new minimum education requirements for the sector that take effect in 2019.

CORPORATES
AMP LIMITED – ASX AMP, SLATER AND GORDON LIMITED – ASX SGH, UBS HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, QUINN EMANUEL URQUHART AND SULLIVAN LP, SHINE LAWYERS, PHI FINNEY McDONALD PTY LTD, SUPREME COURT OF NEW SOUTH WALES, FEDERAL COURT OF AUSTRALIA, BELL POTTER SECURITIES LIMITED

Strip super from union awards

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Original article by Joanna Mather
The Australian Financial Review – Page: 1 & 8 : 29-May-18

The Productivity Commission’s highly-anticipated report on the superannuation system has recommended major changes to the default fund regime. It proposes that an expert panel – rather than unions or employers – be given responsibility for selecting a list of 10 default super funds. The Commission says this would address problems such workers being locked into underperforming default funds and the creation of multiple accounts when people change jobs. The Commission has also made recommendations on issues such as the number of independent directors on super funds’ boards.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Minister lambasts CBA fee gouge

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Original article by Caitlin Fitzsimmons
The Age – Page: 8 : 24-May-18

Financial Services Minister Kelly O’Dwyer has criticised the Commonwealth Bank’s move to impose a "regulatory reform fee" on members of its superannuation and pension funds. Super fund members have been told that the fee is to cover the cost of unspecified but "highly technical and complex" regulatory reforms. O’Dwyer says there appears to be no justification for the fee, and argues that customers’ retirement savings should not be used to meet compliance requirements.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF FINANCE, COLONIAL FIRST STATE GROUP LIMITED, COMMONWEALTH PRIVATE BANK, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Wilson warns on rotten AMP

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Original article by Sarah Turner
The Australian Financial Review – Page: 13 & 26 : 16-May-18

Fund manager Geoff Wilson says former AMP employees have told him that its financial planning division is completely "rotten" and the banking royal commission’s revelations of misconduct are just the beginning. Wilson says the scandals at AMP have made it difficult to value the stock, and there may not be a price at which it constitutes a "buy". There is speculation that the royal commission may result in stricter regulation of the financial services sector, but Antipodes Partners’ Graham Hay cautions against any action that may actually reduce competition.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, ANTIPODES PARTNERS

Fourth bid for AMP class action

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Original article by Ben Butler
The Australian – Page: 19 : 15-May-18

Maurice Blackburn is the latest law firm to propose launching a class action against wealth manager AMP in response to the scandals exposed by the banking royal commission. Phi Finney McDonald and Quinn Emanuel Urquhart & Sullivan have filed class action lawsuits to date, while Slater & Gordon has also flagged possible legal action on behalf of AMP shareholders. Andrew Watson of Maurice Blackburn stresses factors other than the lowest commission rate will determine which class action is allowed to proceed.

CORPORATES
AMP LIMITED – ASX AMP, MAURICE BLACKBURN PTY LTD, PHI FINNEY MCDONALD PTY LTD, QUINN EMANUEL URQUHART AND SULLIVAN LP, SLATER AND GORDON LIMITED – ASX SGH, INTERNATIONAL LITIGATION FUNDING PARTNERS INCORPORATED, FEDERAL COURT OF AUSTRALIA, SUPREME COURT OF NEW SOUTH WALES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE GROUP LIMITED – ASX MQG, IMF BENTHAM LIMITED – ASX IMF

HBF exits policy ranking websites

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Original article by Sarah-Jane Tasker
The Australian – Page: 3 : 14-May-18

HBF has estimated that comparison websites received more than $A150m in commissions from private health insurers in 2016-17. HBF CEO John Van Der Wielen believes that the cost of using comparison websites is contributing to a rise in health insurance premiums. The not-for-profit fund will cease marketing its products via comparison websites. The Australian Competition & Consumer Commission’s deputy chair Delia Rickard says many consumers may not be aware that health insurers pay commissions to attract new customers.

CORPORATES
HBF HEALTH LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BUPA AUSTRALIA PTY LTD, PRIVATE HEALTH INSURANCE INTERMEDIARIES ASSOCIATION INCORPORATED

Wilkins sorry as first strike pounds AMP

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Original article by Richard Gluyas
The Australian – Page: 19 & 23 : 11-May-18

AMP incurred a backlash from investors at its annual meeting on 10 May, with 61.5 per cent of votes cast rejecting its remuneration report. The financial services group could face a board spill in 2019 under the "two-strikes" regime. AMP director Andrew Harmos has retained his seat on the board, although 37.5 per cent of votes cast were opposed to his re-election. Meanwhile, acting executive chairman Mike Wilkins has apologised to shareholders for the "fees-for-no-service" scandal, and acknowledged that rebuilding trust and confidence in the AMP brand will take time.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CLAYTON UTZ, AMP CAPITAL INVESTORS LIMITED, FEDERAL COURT OF AUSTRALIA, SUPREME COURT OF NEW SOUTH WALES

AMP faces $2b class action

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Original article by Misa Han
The Australian Financial Review – Page: 23 : 10-May-18

AMP has declined to comment on a move by law firm Quinn Emanuel to launch a class action against the embattled financial services group. The class action is open to investors who bought AMP shares between 4 May 2013 and 18 April 2018. Several other law firms may also pursue class actions against AMP following the banking royal commission’s revelations that the group had charged fees for services that were not provided and had lied to the Australian Securities & Investments Commission.

CORPORATES
AMP LIMITED – ASX AMP, QUINN EMANUEL URQUHART AND SULLIVAN LP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SLATER AND GORDON LIMITED – ASX SGH, PHI FINNEY McDONALD PTY LTD, SHINE LAWYERS

AMP reeling as more pull pin

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Original article by Richard Gluyas
The Australian – Page: 1 & 16 : 9-May-18

Holly Kramer, Van­essa Wallace and Patty Akopiantz have resigned as directors of AMP in the wake of revelations that it charged fees for services that clients did not receive. Kramer and Wallace were seeking re-election at AMP’s AGM on 10 May, and sources within the financial services group have suggested that they were unlikely to gain another term on the board. Akopiantz is not standing for re-election, but she has agreed to step down at the end of 2018. Andrew Harmos is tipped to be re-elected at the AGM, although he is likely to face a backlash from investors.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WOOLWORTHS GROUP LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, SEEK LIMITED – ASX SEK, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED