BANKS AND BANKING – AUSTRALIA

Rates on the rise: Westpac takes first shot with interest hike

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Original article by Michael Roddan, Adam Creighton
The Australian – Page: 1 & 2 : 30-Aug-18

Sally Tindall of RateCity expects Westpac’s major rivals to quickly follow its lead in announcing an increase in its mortgage interest rates. Westpac has cited higher funding costs for its decision to increase the rates on interest-only and principal-and-interest loans for owner-occupiers and property investors from 19 September. Westpac CEO Brian Hartzer says the bank is of the view that higher funding costs are likely to be sustained for some time. The Reserve Bank has not increased official interest rates since August 2016.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, RATECITY PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RESERVE BANK OF AUSTRALIA, MACQUARIE GROUP LIMITED – ASX MQG, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AMP BANK LIMITED, BANK OF QUEENSLAND LIMITED – ASX BOQ, ING DIRECT, ME BANK, SUNCORP BANK, CITIGROUP PTY LTD, BEYOND BANK AUSTRALIA, AUSWIDE BANK LIMITED – ASX ABA, MYSTATE LIMITED – ASX MYS, QBANK, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIAN LABOR PARTY

ASIC warns CBA on reverse mortgages

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Original article by James Eyers
The Australian Financial Review – Page: 19 : 29-Aug-18

Lending standards in the reverse mortgage sector have come under scrutiny by the Australian Securities & Investments Commission, which has expressed concern that some lenders have adopted a "tick the box" approach to approving such loans. The Commonwealth Bank and its Bankwest subsidiary are the leading providers of reverse mortgages, which tend to be popular with older people. Demand for such products is expected to increase due to Australia’s ageing population.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANKWEST, WESTPAC BANKING CORPORATION – ASX WBC, MACQUARIE GROUP LIMITED – ASX MQG, HEARTLAND SENIORS FINANCE, AUSTRALIA. PRODUCTIVITY COMMISSION

NAB operations boss quits as Baird firms for top job

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Original article by James Eyers
The Australian Financial Review – Page: 15 & 18 : 28-Aug-18

Former New South Wales premier Mike Baird is now regarded as the leading internal candidate to eventually succeed National Australia Bank CEO Andrew Thorburn. COO Antony Cahill had been seen as a potential successor, but he will leave the bank in mid-September to take up a role at Visa in the UK. Andrew Hagger was also regarded as a contender to replace Thorburn, but he attracted scrutiny by the banking royal commission over the fee-for-no-service scandal. External candidates are said to include former Westpac executive Jason Yetton.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, VISA INTERNATIONAL, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WESTPAC BANKING CORPORATION – ASX WBC, SOCIETYONE AUSTRALIA PTY LTD, MLC LIMITED, PERPETUAL LIMITED – ASX PPT

Exposure was good for banks: Elliott

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Original article by Richard Gluyas
The Australian – Page: 21 : 24-Aug-18

ANZ Bank CEO Shayne Elliott has no regrets about his involvement in calling for the financial services royal commission, even though the evidence it has presented has been "confronting". The CEOs and chairmen of the major banks urged Treasurer Scott Morrison to hold the inquiry in a letter sent to him in November 2017. They noted that confidence in the financial system was being hurt by the ongoing speculation about the prospect of a royal commission.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY

NAB withheld size of fee scandal from ASIC for 11 months

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Original article by Joanna Mather
The Australian Financial Review – Page: 2 : 22-Aug-18

Australian financial services providers could be forced to repay clients more than $1bn over the fee-for-no-service scandal. The Australian Securities & Investments Commission’s deputy chairman Peter Kell has told the banking royal commission that just $260m has been refunded to date. Meanwhile, National Australia Bank informed ASIC in early November 2016 that clients affected by the scandal were owed $34.6m, but ASIC contends that NAB was aware of the extent of these liabilities some 11 months earlier. ASIC’s first report on the scandal had estimated that NAB owed just $12m.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP

NAB’s board met ASIC days before Hayne hit

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Original article by Pamela Williams
The Australian – Page: 17 & 20 : 17-Aug-18

Senior National Australia Bank executives held a meeting with Australian Securities & Investments Commission officials at the bank’s headquarters on 30 July. NAB executives subsequently fronted the banking royal commission in early August, after featuring prominently in its previous hearings. An NAB spokesman has indicated that the meeting with ASIC had been organised in late 2017 and such meetings are held regularly. Documents released by the inquiry on 15 August show that ASIC has accused NAB of a range of civil and criminal offences in relation to the "fee for no service" scandal.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

NAB fee grab slammed by the watchdog

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Original article by Ben Butler
The Australian – Page: 17 & 22 : 16-Aug-18

Documents released by the banking royal commission show that the Australian Securities & Investments Commission has criticised National Australia Bank over its lack of action in addressing the fee-for-no-service scandal. ASIC wrote to NAB in May to express its dissatisfaction with the bank’s proposed remedial action, stating that it did not constitute an "acceptable resolution" to the regulator’s concerns. ASIC has accused NAB of a range of civil and criminal offences.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, NULIS NOMINEES AUSTRALIA LIMITED

Senator demands extension to the Hayne inquiry to hear all claims

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Original article by Andrew Tillett
The Australian Financial Review – Page: 6 : 15-Aug-18

The banking royal commission is slated to deliver its final report by 1 February. However, Katter’s Australia Party senator Fraser Anning wants the inquiry to be extended, noting that just six farmers have been given the opportunity to provide evidence about misconduct in the financial services industry. Anning has also called for the inquiry’s terms of reference to be broadened to include the conduct of receivers, liquidators and valuers. He has raised the possibility of voting against government bills if the inquiry is not extended.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, KATTER’S AUSTRALIAN PARTY, LIBERAL PARTY OF AUSTRALIA, ONE NATION PARTY

CBA’s 15,000 crimes waved on by APRA

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Original article by Ben Butler, Michael Roddan
The Australian – Page: 18 & 23 : 15-Aug-18

The banking royal commission has been told that the Australian Prudential Regulation Authority did not pursue action against Colonial First State over its tardiness in transitioning customers to MySuper products. The Commonwealth Bank of Australia subsidiary had been required to shift clients to the low-fee accounts by the start of 2014. However, it did not do so for more than three years. CBA admitted to over 15,000 breaches of the Superannuation Industry Supervision Act, but rather than impose fines, APRA approved a plan to gradually transition CFS clients to MySuper accounts.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COLONIAL FIRST STATE GROUP LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSSIE HOME LOANS LIMITED, COUNT FINANCIAL LIMITED, FINANCIAL WISDOM LIMITED

NAB hid compo from ASIC

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Original article by Ben Butler, Michael Roddan
The Australian – Page: 17 & 21 : 14-Aug-18

National Australia Bank’s Andrew Hagger has denied allegations that it withheld information on compensation payments from the Australian Securities & Investments Commission. He told the banking royal commission that he had been "open and transparent" with ASIC commissioner Greg Tanzer in a telephone conversation on 24 October 2016, several hours after NAB’s wealth unit passed a resolution to increase compensation over its plan service fee. NAB released its financial results three days later, the same day on which ASIC released a report on the fees-for-no-service scandal.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, NATIONAL WEALTH MANAGEMENT SERVICES LIMITED, NULIS NOMINEES AUSTRALIA LIMITED