K: Financial and Insurance Services

ANZ fires up Asia exit in $1.8b sale

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Original article by James Frost
The Australian Financial Review – Page: 1 : 4-Jan-17

ANZ Banking Group is retreating from Asia, with the latest transaction being the sale of its 20 per cent stake in Shanghai Rural Commercial Bank for $A1.8 billion. The stake is being acquired in two equal tranches by China COSCO Shipping Corporation and Shanghai Sino Poland Enterprise Management Development Corporation. The sale will result in a rise in ANZ’s tier one capital ratio from 9.6 per cent to 10 per cent.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SHANGHAI RURAL COMMERCIAL BANK, ESANDA FINANCE CORPORATION LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, DBS GROUP HOLDINGS LIMITED, CHINA COSCO SHIPPING CORPORATION, SHANGHAI SINO POLAND ENTERPRISE MANAGEMENT DEVELOPMENT CORPORATION, BANK OF TIANJIN COMPANY LIMITED, AMBANK BERHAD

Blue sky for miners, banks tipped in year ahead

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Original article by David Rogers
The Australian – Page: 18 : 23-Dec-16

The S&P/ASX 200 share index rose 0.5 per cent to 5,643.9 points on 22 December 2016. T Rowe Price head of Australian equities Randal Jenneke is optimistic about the stockmarket’s future performance. He expects the S&P/ASX 200 to rise as much as eight per cent by mid-2016. Mining and finance stocks are likely to perform strongly while "defensive yield" stocks will underperform.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, T ROWE PRICE GROUP INCORPORATED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

AustralianSuper, Hostplus blast rivals’ premium hikes

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Original article by Michael Roddan
The Australian – Page: 18 : 23-Dec-16

Premiums for insurance policies arranged through superanuation funds are rising too fast. Rice Warner reports that the cost of death and total and permanent disability cover has risen 215 per cent on average since the beginning of 2013. IOOF wealth management manager Renato Mota says the rises were necessary because the rates were "unsustainably low".

CORPORATES
RICE WARNER ACTUARIES PTY LTD, IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIANSUPER PTY LTD, HOST-PLUS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMINSURE, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Westpac subsidiary taken to court on super advice

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Original article by Lucy Battersby
The Age – Page: 19 : 23-Dec-16

The Australian Securities & Investments Commission has launched legal action against Westpac Securities Administration Limited (WSAL) and BT Funds Management (BTFM). ASIC alleges in documents filed with the Federal Court’s New South Wales registry on 21 December 2016 that WSAL and BTFM breached the "best interests duty" regulations on 15 occasions during a sales campaign promoting superannuation products.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, WESTPAC SECURITISIES ADMINISTRATION LIMITED, BT FUNDS MANAGEMENT

ASIC raps banks for forex faults

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Original article by Michael Bennet
The Australian – Page: 13 & 18 : 22-Dec-16

National Australia Bank and the Commonwealth Bank have agreed to enforceable undertakings from the Australian Securities & ­Investments Commission regarding their wholesale spot foreign exchange businesses. It follows ASIC’s investigation into inappropriate conduct by foreign exchange traders at the two major banks. Three of the nation’s "big four" banks are also the subject of legal action over allegations that they manipulated the bank bill swap rate.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FEDERAL COURT OF AUSTRALIA, MACQUARIE GROUP LIMITED – ASX MQG

Shake-up in offing after response to ASX outage

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Original article by Daniel Palmer
The Australian – Page: 13 & 18 : 22-Dec-16

The Australian Securities & Investments Commission has released its final report on a review of the ASX’s computer system failure on 19 September 2016. Amongst other things, ASIC has questioned the ASX’s decision to put the market on "enquire" mode rather than respond to a request from rival stock exchange operator Chi-X to shift it to "adjust" mode. ASX MD Dom­inic Stevens says ASIC’s recommendations are being considered and some actions have already been taken in response to the outage.

CORPORATES
ASX LIMITED – ASX ASX, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CHI-X AUSTRALIA PTY LTD

Split emerges on interest rates forecast

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Original article by Jessica Sier
The Age – Page: 20 : 22-Dec-16

Westpac and ANZ Bank economists expect Australia’s cash rate to remain unchanged in 2017, while National Australia Bank suggests that there is potential for two rate cuts. Financial markets have responded to the release of the minutes of Reserve Bank’s December 2016 board meeting by lifting the chances of a rate rise in 2017 from 40 per cent to 55 per cent. The minutes show that the central bank is concerned about the residential property market and the level of household debt.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, UNITED STATES. FEDERAL RESERVE BOARD

Bulls prevail in new yearly high

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Original article by Daniel Palmer
The Australian – Page: 18 : 22-Dec-16

The Australian sharemarket posted solid gains on 21 December 2016, with the S&P/ASX 200 adding 22.4 points to close at 5,613.5. BHP Billiton was one per cent higher at $A25.17 and Woodside Petroleum advanced 0.3 per cent to end the session at $A31.04. However, the Commonwealth Bank was 0.2 per cent lower at $A82.09 and Slater & Gordon shed 7.5 per cent to finish at $A0.24.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SLATER AND GORDON LIMITED – ASX SGH, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, SANTOS LIMITED – ASX STO, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, TELSTRA CORPORATION LIMITED – ASX TLS, QANTAS AIRWAYS LIMITED – ASX QAN, THE A2 MILK COMPANY LIMITED – ASX A2M, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, IG MARKETS LIMITED, CMC MARKETS PTY LTD, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

Mortgage stress strikes bush, city amid fears of an interest rate hike

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Original article by Michael Bennet
The Australian – Page: 13 & 18 : 21-Dec-16

Standard & Poor’s has reported that the number of Australian mortgage borrowers in arrear rose in October 2016. Digital Finance Analytics has identified the 20 postcodes across Australia that boast the highest level of mortgage stress. Many of these are in regional areas, although the list includes a number of suburbs in major capital cities. Martin North of DFA says the outlook for interest rates will determine whether there is an increase in home loan arrears and defaults. He anticipates that the cash rate will rise by 50 basis points in 2017.

CORPORATES
DIGITAL FINANCE ANALYTICS, STANDARD AND POOR’S FINANCIAL SERVICES LLC, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, ALLIANCEBERNSTEIN HOLDING LP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF QUEENSLAND LIMITED – ASX BOQ, CLSA AUSTRALIA PTY LTD

Super trustees ‘fail to act’ on liquidity risks

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 21-Dec-16

The Australian Prudential Regulation Authority has expressed concern that many trustees of superannuation funds are not using the results of liquidity stress testing when making investment decisions. APRA has noted that while super funds have made progress with regard to liquidity stress testing, further improvement is needed. Rice Warner adds that Australia’s ageing population presents a major liquidity risk for super fund trustees.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RICE WARNER ACTUARIES PTY LTD