K: Financial and Insurance Services

Rise in insurer requests for full medical records

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 16-Oct-17

The federal parliamentary joint committee on corporations and financial services is investigating the $A44 billion life insurance sector. The Royal Australian College of General Practitioners has told the committee that its members are receiving increased requests for full patient records, while it believes strongly that such requests should not be allowed. MDA National believes that patients should be informed if an insurance company has made a request to access their records.

CORPORATES
AUSTRALIA. JOINT COMMITTEE ON CORPORATIONS AND FINANCIAL SERVICES, THE ROYAL AUSTRALIAN COLLEGE OF GENERAL PRACTITIONERS, MDA NATIONAL PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN LABOR PARTY, AIA AUSTRALIA LIMITED

‘Market vulnerable to 1987-style crash’

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Original article by Glenda Korporaal
The Australian – Page: 19 & 23 : 16-Oct-17

With the 30th anniversary of the Black Monday stock market crash of October 1987 approaching, experts warn that there is the potential for another sharemarket rout. Former ASX chairman Maurice Newman was the head of Bain & Company at the time of the 1987 crash. He notes that sharemarket valuations are again highly inflated, and share prices are now well above those that prevailed immediately before previous crashes. The former CEO of the Sydney Futures Exchange, Les Hosking, also warns that financial markets are vulnerable to another crash.

CORPORATES
ASX LIMITED – ASX ASX, SYDNEY FUTURES EXCHANGE LIMITED, BAIN AND COMPANY

Westpac ‘rips off clients’ with life insurance

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Original article by Anthony Klan
The Australian – Page: 1 & 6 : 13-Oct-17

Shine Lawyers is leading a class action against Westpac and its BankSA, St George and Bank of Melbourne subsidiaries. The legal action alleges that Westpac charges more for life insurance policies when taken out through a Westpac financial planner than through a non-Westpac planner. Janice Shaddler of Shine says the Westpac customers it is representing are feeling "incredibly let down" for having trusted their Westpac adviser to do the right thing by them. A spokesman for Westpac says it will investigate the allegations.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BANK OF SOUTH AUSTRALIA LIMITED, ST GEORGE BANK LIMITED, BANK OF MELBOURNE LIMITED, SHINE LAWYERS, SHINE CORPORATE LIMITED – ASX SHJ, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

ASX stalls as world hits top gear

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Original article by David Rogers
The Australian – Page: 19 & 30 : 13-Oct-17

Australia’s S&P/ASX 200 Index has risen by 2.3 per cent so far in 2017, including a 2.5 per cent gain in the last five trading sessions. However, it is still 15 per cent below its peak, and its performance significantly lags that of its international peers. AMP Capital’s Nader Naeimi says overseas markets offer better opportunities for investors at present, while James Pomeroy of HSBC forecasts that emerging markets will become a major driver of global economic growth.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, HSBC BANK PLC, NIKKEI 225 INDEX, STOXX EUROPE 600 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, NASDAQ COMPOSITE INDEX, EURO STOXX 50 INDEX, MSCI EMERGING MARKETS INDEX, TELSTRA CORPORATION LIMITED – ASX TLS

Broker rejects ASIC interest only claims

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Original article by James Frost
The Australian Financial Review – Page: 20 : 13-Oct-17

The Australian Securities & Investments Commission has suggested that borrowers who use mortgage brokers are more likely to take out interest-only loans. This has drawn a strong rebuke from Mortgage Choice, which noted that the percentage of interest-only loans it had written in September was only 16.4 per cent, down from 35.95 per cent in May. The Australian Prudential Regulation Authority has mandated that no more than 30 per cent of new loans shall be interest-only loans from September.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MORTGAGE CHOICE LIMITED – ASX MOC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Bankers still dubious of amended BEAR

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Original article by James Frost. Andrew Tillett
The Australian Financial Review – Page: 19 : 12-Oct-17

There is broad support within the banking industry and the legal sector for the Federal Government’s changes to its Banking Executive Accountability Regime. Amongst other things, the Government has agreed to allow bank executives to appeal against decisions made under the proposed regime. However, there are still some concerns about the reforms, including the additional powers to be given to the Australian Prudential Regulation Authority and the application of the reforms to banks’ subsidiaries.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC. AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ. AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY. ASHURST AUSTRALIA. AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION. AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL

Westpac digs in heels over interest-only

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Original article by Michael Roddan
The Australian – Page: 17 & 20 : 12-Oct-17

Westpac CEO Brian Hartzer appeared before a parliamentary committee on 11 October. He downplayed concerns about the risks associated with interest-only mortgage loans, arguing that Westpac does not issue loans to people who lack the capacity to repay them. Hartzer added that the Reserve Bank is more concerned about the effect of future interest rate rises on household budgets than the potential impact of interest-only loans on the financial system. ANZ Bank CEO Shayne Elliott told the committee that risks associated with its interest-only loans had been identified nearly 12 months before regulatory action to curb such loans.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC. AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ. AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY. AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION. RESERVE BANK OF AUSTRALIA. COUNCIL OF FINANCIAL REGULATORS. UBS HOLDINGS PTY LTD

Westpac takes knife to transaction fees

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 16 : 11-Oct-17

Westpac has revised its fees and charges for legacy products that pre-date online banking and reflect an era when most transactions were made in bank branches. Amongst other things, all personal transaction accounts will have a maximum account-keeping fee of $A5 a month, while Westpac will abolish transaction fees on all personal accounts. George Frazis, the head of consumer banking, says Westpac will make further changes to its fees and charges.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Admitting guilt the clincher for rate-rig case

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Original article by Jonathan Shapiro, Patrick Durkin
The Australian Financial Review – Page: 13 & 18 : 11-Oct-17

The Australian Securities & Investments Commission’s case against three of the "big four" banks over allegations that they manipulated the bank bill swap rate will be heard by the Federal Court on 23 October. Some observers believe that the parties could reach a settlement before the case begins, although this would require the banks to admit that they had engaged in unconscionable conduct. Meanwhile, stock exchange operator ASX Limited has issued new guidelines regarding bank bill trading in the wake of the BBSW scandal.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FEDERAL COURT OF AUSTRALIA, ASX LIMITED – ASX ASX, COUNCIL OF FINANCIAL REGULATORS

Tension hits world merger activity

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Original article by Cliona O’Dowd
The Australian – Page: 28 : 10-Oct-17

A new report shows that mergers and acquisitions activity in the Asia-Pacific region, excluding Japan, has fallen by 7.8 per cent so far in 2017. M&A activity in the region declined by 10.9 per cent in the September quarter, to $US157.8bn. There were some $A674bn worth of deals globally during the quarter, or 3,772 transactions in total. Macquarie Group advised on $US22.65bn worth of M&A deals in Australasia.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, LATTICE SEMICONDUCTOR, UNITED TECHNOLOGIES CORPORATION, ROCKWELL COLLINS INCORPORATED, BRITISH AMERICAN TOBACCO PLC, RJ REYNOLDS TOBACCO COMPANY