K: Financial and Insurance Services

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

Commonwealth Bank admits it broke law over fees

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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

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

CBA falls as legal costs take toll on profit

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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

Budget won’t curb expansion: Credit Suisse

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Original article by David Rogers
The Australian – Page: 30 : 10-May-18

Hasan Tevfik of Credit Suisse says the Federal Government’s May 2018 Budget is unlikely to have a negative impact on corporate profits. He adds that the proposed tax cuts for people on low and middle incomes are relatively modest in comparison to Australia’s record level of household debt, and the tax cuts will result in only a small decline in the debt-to-disposable-income ratio in the next several years. Tevfik still expects the benchmark S&P/ASX 200 to reach 6,500 points by the end of 2018.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, STANDARD AND POOR’S ASX 200 INDEX, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, JB HI-FI LIMITED – ASX JBH, TABCORP HOLDINGS LIMITED – ASX TAH, WAGNERS HOLDING COMPANY LIMITED – ASX WGN, WESFARMERS LIMITED – ASX WES, WOOLWORTHS GROUP LIMITED – ASX WOW, MACQUARIE GROUP LIMITED – ASX MQG, CSL LIMITED – ASX CSL, TREASURY WINE ESTATES LIMITED – ASX TWE, TRANSURBAN GROUP LIMITED – ASX TCL, CHALLENGER LIMITED – ASX CGF, AMP LIMITED – ASX AMP, SUNCORP GROUP LIMITED – ASX SUN, LINK ADMINISTRATION HOLDINGS LIMITED – ASX LNK, IOOF HOLDINGS LIMITED – ASX IFL, HEALTHSCOPE LIMITED – ASX HSO, PRIMARY HEALTH CARE LIMITED – ASX PRY, RAMSAY HEALTH CARE LIMITED – ASX RHC, SONIC HEALTHCARE LIMITED – ASX SHL, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

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

Westpac anger at royal commission tactics

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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

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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

Bendigo Bank customers are most satisfied of the largest banks

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Original article by Roy Morgan
Market Research Update – Page: Online : 7-May-18

New research from Roy Morgan shows that customer satisfaction with Australia’s banks in the six months to March 2018 was 80.9%, down from 81.0% in February. This level still represents a positive result when seen in the context of the long-term monthly average of 73.8% since 2001. Bendigo Bank retained the highest satisfaction rating among the 10 largest consumer banks with 87.5% (down slightly from 87.8% in February). BankWest showed the biggest improvement in satisfaction, up 0.9% to 84.6%, followed by ING (up 0.8% to 87.1%), St. George (up 0.7% to 84.6%) and ANZ (up 0.3% points to 78.7%).

CORPORATES
ROY MORGAN LIMITED, BENDIGO BANK, ING BANK (AUSTRALIA) LIMITED, ST GEORGE BANK LIMITED, BANK OF WESTERN AUSTRALIA LIMITED, BANK OF QUEENSLAND LIMITED – ASX BOQ, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

NAB joins bank retreat from wealth

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 20 : 4-May-18

National Australia Bank CEO Andrew Thorburn has refuted suggestions that its decision to sell the MLC wealth management unit has been prompted by the banking royal commission. However, he concedes that the commission’s revelations have meant that banks must change their approach to business. Thorburn also notes that the NAB is aware that it may not be able to sell MLC as a single unit if the commission decides that financial planners should no longer be able to work for businesses that manufacture investment and superannuation products.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MLC LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NIPPON LIFE INSURANCE COMPANY LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, CLIME ASSET MANAGEMENT PTY LTD, ONEPATH AUSTRALIA LIMITED, ZURICH FINANCIAL SERVICES AG, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, JBWERE LIMITED, NABTRADE, GREAT WESTERN BANK, CLYDESDALE BANK PLC