K: Financial and Insurance Services

Multiple SMSF strategy may prove illegal

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Original article by Sally Patten
The Australian Financial Review – Page: 5 : 24-Apr-17

Changes to superannuation tax rules from 1 July 2017 may prompt some investors who already have one self-managed super fund (SMSF) to set up a second one. However, the Australian Taxation Office has indicated that it will keeping a close eye what it perceives as any attempt to reduce tax by setting up a second SMSF. Fines, penalties and even disqualification are possible remedies available to the ATO.

CORPORATES
AUSTRALIAN TAXATION OFFICE, SMSF ASSOCIATION, HLB MANN JUDD

Brokers slam ‘radical’ home loan reforms

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Original article by Duncan Hughes, James Frost
The Australian Financial Review – Page: 15 & 19 : 20-Apr-17

The recommendations of a review of remuneration in Australia’s retail banking industry have been criticised by mortgage brokers. The recommendations include banning volume-based incentives and so-called soft dollar payments. Mortgage Choice and Australian Finance Group are among the mortgage broking firms that have questioned the recommendations of the review, which was undertaken by Stephen Sedgwick on behalf of the Australian Bankers’ Association.

CORPORATES
MORTGAGE CHOICE LIMITED – ASX MOC, AUSTRALIAN FINANCE GROUP LIMITED – ASX AFG, MONEYQUEST, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIAN PUBLIC SERVICE COMMISSION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Jobs to go at NAB as banks face cost squeeze

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Original article by Richard Gluyas
The Australian – Page: 19 : 20-Apr-17

Australian banks are continuing to downsize their workforces amid rising costs, falling net interest margins and new capital requirements. The ANZ Bank has advised that it shed 35 IT jobs in early 2017, while National Australia Bank recently told staff that it intends to cut about 500 jobs. However, NAB will create 400 new jobs, with some displaced staff likely to be redeployed. There was a 2.4 per cent reduction in full-time staff in Australia’s banking industry in 2015-16.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Banks take advantage and profit from ‘general advice’

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 19-Apr-17

Financial Planning Association CEO Dante De Gori has expressed concern about the use of the term "general advice" in Australia’s financial services industry. He argues that many consumers are confused about what constitutes financial advice. The FPA advocates changing the phrase "general advice" to "general information", to ensure that consumers understand that they are being sold a financial product rather than receiving financial advice.

CORPORATES
FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, WESTPAC SECURITIES ADMINISTRATION LIMITED, BT FUNDS MANAGEMENT

External factors align for a ‘buying opportunity’

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Original article by David Rogers
The Australian – Page: 25 : 19-Apr-17

Australia’s benchmark S&P/ASX 200 Index remained above the technically important 5,830- point level on 18 April 2017, despite a further downturn in the iron ore price. However, the local sharemarket has fallen by just 2.2 per cent since its recent peak of 5,950.1, and it could still test the 6,000-point level for the first time since 2008. Meanwhile, Morgan Stanley remains bearish about the outlook for the local market, and the firm still expects the S&P/ASX 200 to fall to 5,450 by the end of the year.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MORGAN STANLEY AUSTRALIA LIMITED, STANDARD AND POOR’S 500 INDEX, CITIGROUP PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Traders pour into gold as tensions rise

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Original article by David Rogers
The Australian – Page: 32 : 13-Apr-17

The price of gold has rallied in recent weeks as growing geopolitical tensions prompt renewed investor support for "safe haven" assets. Meanwhile, the yield on 10-year US Treasuries recently reached a five-month low and it is again testing this level, while the VIX volatility index has risen to its highest level in five months. However, Joseph Capurso of the Commonwealth Bank says the continued strength of the US dollar suggests that recent financial market trends do not constitute a "global risk-off event".

CORPORATES
CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MORGAN STANLEY CAPITAL INTERNATIONAL ALL COUNTRY WORLD INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AMP CAPITAL INVESTORS LIMITED

Activism may explain ASX’s sprint to 6000

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Original article by Jessica Sier
The Australian Financial Review – Page: 25 : 12-Apr-17

Hasan Tevfik of Credit Suisse says international shareholder activists may increasingly target Australian shares, adding that it is surprising that they have not already done so. He suggests that activist investors may have contributed to the local sharemarket’s recent rally. Shareholder activism has come under scrutiny in the wake of a proposal by US hedge fund Elliott Management for BHP Billiton to undertake a major restructuring.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, ELLIOTT ASSOCIATES LP, PERPETUAL INVESTMENTS, JP MORGAN ASSET MANAGEMENT INCORPORATED, JANA PARTNERS LLC, AMERICAN WHOLE FOODS

Westpac’s Maxsted talks down need for capital

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Original article by Michael Bennet
The Australian – Page: 17 & 20 : 11-Apr-17

Westpac chairman Lindsay Maxsted is confident that recent measures aimed at curbing investor-only home loans will be sufficient and additional intervention by the Australian Prudential Regulation Authority will not be necessary. Maxsted also believes that the nation’s banks will not need to undertake further equity raisings in order to comply with new capital requirements. He adds that Westpac has prudent lending practices and will not approve loan applications for customers who may be at risk of default.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MOODY’S INVESTORS SERVICE INCORPORATED, BHP BILLITON LIMITED – ASX BHP

Wall Street could stop ASX bull run

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Original article by Philip Baker
The Australian Financial Review – Page: 31 : 11-Apr-17

The S&P/ASX 200’s rise above the 5,900-point level has prompted renewed speculation that it could test 6,000 points. However, the near-term outlook for the benchmark index will depend on the US earnings season, and data from Bloomberg shows that the number of companies that have provided earnings guidance in the last month has fallen to the lowest level since 1999. Meanwhile, borrowings costs may rise as offshore investors bail out of US treasuries and the Federal Reserve prepares to divest $US2.46trn worth of treasuries.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BLOOMBERG LP, UNITED STATES. FEDERAL RESERVE BOARD, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, THOMSON REUTERS PLC, PERPETUAL LIMITED – ASX PPT

M&A seen as resilient to shocks

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 15 : 11-Apr-17

Data from Dealogic shows that $US11.9bn ($A15.9bn) worth of takeover bids for Australian companies were announced in the March 2017 quarter, which is 38 per cent lower year-on-year. Meanwhile, Deloitte has released a report which forecasts that global uncertainty will weigh upon mergers and acquisitions activity in 2017. However, the firm expects an upturn in M&A activity when the uncertainty abates. Timothy Mahapatra of Deloitte notes that deal-making is still a priority for many companies.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED, MACQUARIE CAPITAL PTY LTD, ALINTA ENERGY (AUSTRALIA) PTY LTD, CHOW TAI FOOK ENTERPRISES LIMITED, RIO TINTO LIMITED – ASX RIO, YANCOAL AUSTRALIA LIMITED – ASX YAL, JP MORGAN AUSTRALIA LIMITED