K: Financial and Insurance Services

Tax breaks to be reintroduced

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Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 13-Oct-14

The Australian Government will unveil its National Industry Investment and Competitiveness Agenda on 14 October 2014. The policy includes unwinding the Australian Labor Party’s changes to regulations governing employee share schemes and changes to the significant investor scheme to ensure that money is invested in sectors of the economy where it is needed. The Government will also encourage greater co-operation between the business and education sectors

CORPORATES
AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. DEPT OF INDUSTRY, AUSTRALIA. OFFICE OF THE CHIEF SCIENTIST

Murray debate off course: Maxsted

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Original article by Richard Gluyas
The Australian – Page: 19 : 10-Oct-14

The financial system review conducted by David Murray for the Australian Government is widely expected to recommend stricter capital requirements for the banking sector, in line with global regulation efforts. However Lindsay Maxsted, chair of Westpac Banking, argues that this would be short-sighted and neglect to take into account the important role banks play in financially supporting businesses and the economy. Leading staff from the four major lenders have held talks with Murray on the issue

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, TRANSURBAN GROUP LIMITED – ASX TCL, GROUP OF TWENTY (G-20)

Life advice so bad it was illegal: ASIC

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Original article by Andrew Main, Ben Butler
The Australian – Page: 21 : 10-Oct-14

Peter Kell, deputy at the Australian Securities & Investments Commission, says a new survey of the life insurance industry shows that standards are disappointingly low. The advice given to some 37% of consumers on such policies was so deficient that it actually contravened the relevant laws. Kell points out that the new Future of Financial Advice legislation puts the onus on providers to act in the best interests of their clients, and that the sector must act to improve its compliance

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FINANCIAL SERVICES COUNCIL, ASSOCIATION OF FINANCIAL ADVISERS LIMITED, FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED

ANZ-Roy Morgan Consumer Confidence Bumping Along Average Levels

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 7-Oct-14

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 1.0 per cent to 112.6 in the week ended 5 October 2014. Consumer Confidence has now been broadly steady for eight consecutive weeks, sitting around its long run average. There has been a 3.7 per cent decline in households’ perceptions about their current financial situation compared with 12 months ago, and a 2.4 per fall in households’ expectations of their financial situation in 12 months’ time

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

RBA must ‘bite the bullet’ on housing and lift rates

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Original article by Christopher Joye
The Australian Financial Review – Page: 8 : 8-Oct-14

The Reserve Bank of Australia (RBA) has finally adopted the advice of "The Australian Financial Review", and started to consider macroprudential measures to rein in rampant residential real estate prices growth. Some banking leaders also want the central bank to lift the official cash interest rate from its all-time low, to signal to property buyers that the current environment cannot last. Investors appear oblivious to the fact that the increase in asset values of 7%-plus per annum must come to an end, and a dangerous "bubble" may be forming

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, RESERVE BANK OF AUSTRALIA, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS

Regis Healthcare float finds favour

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Original article by Nick Lenaghan, James Thomson, Jessica Gardner
The Australian Financial Review – Page: 15 & 20 : 8-Oct-14

Regis Healthcare listed on the Australian sharemarket on 7 October 2014. The aged care operator raised $A486 million in its IPO. The company was founded by Bryan Dorman and Ian Roberts in 1991. It has grown from two facilities to 45, and is now positioned for further growth. The stock was issued at $A3.65 and closed at $A4.02. Dorman and Roberts each kept a stake of 27.3 per cent, together worth $A658 million after the first day of trade

CORPORATES
REGIS HEALTHCARE LIMITED – ASX REG, STANDARD AND POOR’S ASX 200 INDEX, HEALTHSCOPE LIMITED – ASX HSO, VIRTUS HEALTH LIMITED – ASX VRT, JAPARA HEALTHCARE LIMITED – ASX JHC, MEDIBANK PRIVATE LIMITED, MACQUARIE CAPITAL PTY LTD, RETIREMENT CARE AUSTRALIA

Hockey seeks foreign funds for assets

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Original article by David Crowe
The Australian – Page: 15 : 6-Oct-14

Staff at US investment banks Bank of America Merrill Lynch, Citigroup, Morgan Stanley and JP Morgan Chase & Company will on 6 and 7 October 2014 hear from Australian Treasurer Joe Hockey. He is keen to attract major investors from the US for planned privatisation moves by state governments. The Federal Government is encouraging them to sell assets so that the funds can be reallocated to new infrastructure. Hockey will also meet with News Corporation executive chair Rupert Murdoch and Federal Reserve Bank of New York president William Dudley

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NEWS CORPORATION – ASX NWS, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, CITIGROUP INCORPORATED, MORGAN STANLEY AND COMPANY INCORPORATED, JP MORGAN CHASE AND COMPANY, POWERLINK PTY LTD, ENERGEX LIMITED, ERGON ENERGY CORPORATION LIMITED, IFM INVESTORS PTY LTD, HASTINGS FUNDS MANAGEMENT LIMITED, CHINA MERCHANTS GROUP, TAWREED INVESTMENTS LIMITED, GROUP OF TWENTY (G-20), INTERNATIONAL MONETARY FUND, FEDERAL RESERVE BANK OF NEW YORK

Investors return to golden safe haven

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Original article by Jared Lynch
The Australian Financial Review – Page: 16 : 3-Oct-14

The Perth Mint and the US Mint have reported a strong rise in demand for gold coins in September 2014. This coincided with a 6.1 per cent fall in the gold price during the month. The Perth Mint’s gold bars are also in demand, with sales rising by 37 per cent in September. The mint’s Bron Suchecki notes that demand from China in particular has improved in the wake of the fall in the gold price

CORPORATES
PERTH MINT, UNITED STATES MINT, GUARDIAN VAULTS PTY LTD, RESERVE BANK OF AUSTRALIA

Leave capital levels alone ANZ chief tells Murray

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 18 : 3-Oct-14

The final report of the inquiry into Australia’s financial system is widely tipped to include recommendations on changes to capital requirements in the banking sector. ANZ Bank CEO Mike Smith argues that the inquiry should not outline any specific capital levels, noting that the Australian Prudential Regulation Authority can already direct banks to hold a certain level of capital. Smith has also downplayed concerns about banks’ high exposure to mortgage loans

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, FINANCIAL STABILITY BOARD

Rival hits at Medibank for no share giveaway

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Original article by Jessica Gardner
The Australian Financial Review – Page: 5 : 3-Oct-14

Westfund COO Phillip Berner believes that Medibank Private customers’ loyalty should have been rewarded in the health fund’s IPO. Medibank policyholders who pre-register for the IPO may receive a priority allocation of shares, but Berner says they should have been given free shares or some other form of compensation. He adds that some Medibank customers who are unhappy with their treatment in the privatisation may opt to switch funds

CORPORATES
MEDIBANK PRIVATE LIMITED, WESTFUND HEALTH INSURANCE, ROY MORGAN RESEARCH LIMITED, QR NATIONAL LIMITED