BANKS AND BANKING – AUSTRALIA

CBA looks at selling advice firms

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Original article by James Eyers
The Australian Financial Review – Page: 13 : 24-Apr-18

The Commonwealth Bank is said to be reviewing its ownership of the Count Financial and Financial Wisdom financial planning groups. An announcement on a possible sale of the two groups could be made in the second half of 2018. The banking royal commission’s revelations have prompted banks to consider their ownership of financial planning groups, amid concern about the potential for conflicts of interests. The CBA paid $A373 million for Count Financial in 2011, while it assumed ownership of Financial Wisdom when it acquired the Colonial Group in 2000.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COUNT FINANCIAL LIMITED, FINANCIAL WISDOM LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COLONIAL GROUP, UBS HOLDINGS PTY LTD, SHAW AND PARTNERS LIMITED

CBA charges dead customers for advice

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Original article by James Frost
The Australian Financial Review – Page: 9 : 20-Apr-18

The Commonwealth Bank of Australia has apologised to the families of deceased customers who had continued to be charged fees for financial advice after their death. The banking royal commission has been told that four deceased customers of CBA subsidiary Count Financial had been charged fees, in one case for more than 10 years after their death. The inquiry has also been told that CBA had been made aware of a fees-for-no-service scandal at Count Financial in November 2012, but it did not inform ASIC until 2014.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COUNT FINANCIAL LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, DELOITTE TOUCHE TOHMATSU LIMITED, AMP LIMITED – ASX AMP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC

CBA reputation hammered by series of scandals

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 18 : 19-Apr-18

The Commonwealth Bank is rated 57th in the Reputation Institute’s latest Australian Corporate Reputation Index, compared with 36th previously. The index was compiled in February and March, and followed a series of scandals and executive departures at the bank. However, the positions of Australia’s other three major banks were largely unchanged in the latest index. Air New Zealand has the highest ranking in the index for the second successive year, followed by Toyota and Qantas.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, REPUTATION INSTITUTE PTY LTD, AIR NEW ZEALAND LIMITED – ASX AIZ, TOYOTA MOTOR CORPORATION AUSTRALIA LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN, BHP BILLITON LIMITED – ASX BHP, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SUNCORP GROUP LIMITED – ASX SUN, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, AUSTRALIANSUPER PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RIO TINTO LIMITED – ASX RIO, MYER HOLDINGS LIMITED – ASX MYR, APPLE PTY LTD, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED, ORIGIN ENERGY LIMITED – ASX ORG, AGL ENERGY LIMITED – ASX AGL, ENERGYAUSTRALIA PTY LTD

CBA eyes $4b spin-off of funds manager

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 16 : 18-Apr-18

The Commonwealth Bank of Australia has appointed John Mulcahy as the chairman of Colonial First State Global Asset Management ahead of its demerger and sharemarket float. Goldman Sachs values CFSGAM at between $A3.7bn and $A4.8bn, which could potentially make it the largest Australian IPO since Medibank Private in 2014. CBA opted for an IPO following a strategic review of CFSGAM, which boasts $A219bn worth of assets under management. CBA sold its life insurance business in 2017, and the latest divestiture will enable it to focus on its core banking business.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, GOLDMAN SACHS AUSTRALIA PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, MIRVAC GROUP – ASX MGR, SUNCORP GROUP LIMITED – ASX SUN, AIA GROUP LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, REGAL FUNDS MANAGEMENT PTY LTD, NEW SOUTH WALES TREASURY CORPORATION, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, ECLIPX GROUP LIMITED – ASX ECX, MACQUARIE GROUP LIMITED – ASX MQG, FIDELITY INVESTMENTS AUSTRALIA LIMITED, ERNST AND YOUNG, JP MORGAN AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD

Banks discuss new standards council option

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Original article by James Frost, James Eyers
The Australian Financial Review – Page: 17 : 16-Apr-18

The second week of the banking royal commission’s public hearings will commence on 16 April, with financial planning to be the initial focus. AMP executive Anthony Jack Regan and Australian Securities & Investments Commission deputy chairman Peter Kell are both expected to appear before the commission on 16 April. Meanwhile, talks involving the formation of a Professional Banking Council are continuing, with banks, regulators and industry associations involved in the discussions.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Westpac reveals tough move against liar loans

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Original article by Duncan Hughes
The Australian Financial Review – Page: 34 : 12-Apr-18

Westpac will introduce stricter disclosure criteria for people seeking a home loan from mid-April. Amongst other things, mortgage applications will be required to provide more extensive information on their expenditure in order to qualify for a loan. The move is aimed at cracking down on so-called "liar loans". Independent analysis suggests that about 20 per cent of mortgage applications overstate their income and almost 50 per cent understate their expenditure.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BANK OF MELBOURNE LIMITED, ST GEORGE BANK LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, EQUIFAX INCORPORATED, EXPERIAN AUSTRALIA PTY LTD, ILLION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Inquiry can be a circuit breaker

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Original article by David Rogers, Ben Butler
The Australian – Page: 17 & 26 : 10-Apr-18

Former Westpac CEO David Morgan says he is unsure whether the bonus schemes used by banks deliver high levels of integrity. Morgan values the importance of a productive workplace culture that is combined with high integrity. He thinks the financial services royal commission could act as a "circuit breaker" for the banks in improving their reputations in the wake of a series of scandals. The wealth management arms of the big four banks will come under the commission’s scrutiny when it begins its next round of hearings in the week beginning 16 April.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. DEPT OF THE TREASURY

New chief Comyn pledges to restore confidence in CBA

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Original article by Michael Roddan
The Australian – Page: 17 & 20 : 10-Apr-18

Commonwealth Bank of Australia CEO Matt Comyn has told staff that he is committed to changing the culture at the bank in the wake of a series of scandals. Comyn conceded that CBA had not done enough to protect the interests of its customers, and apologised for the mistakes made by himself and other top executives. Brett Le Mesurier of Shaw & Partners says acting on the recommendations of the banking royal commission will be a key challenge for Comyn, who formally succeeded Ian Narev as CEO on 9 April.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SHAW AND PARTNERS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSSIE HOME LOANS LIMITED, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, MAURICE BLACKBURN PTY LTD, UBS HOLDINGS PTY LTD, FEDERAL COURT OF AUSTRALIA

Banks betting on AI to win back trust

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 16 : 9-Apr-18

IBM executive Marc Andrews believes that Australia’s banks will be looking to make use of artificial intelligence to help restore their corporate image in the wake of the banking royal commission. IBM’s work with banks in the area of AI has focused on a number of key areas, including regulatory compliance and anti-money laundering strategies. Andrews says other areas where banks can make use of AI include helping to prevent bullying, sexism and discrimination in their workplaces, and in the identification of poor culture within teams.

CORPORATES
IBM CORPORATION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Reputation tops Comyn’s CBA to-do list

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Original article by James Thomson
The Australian Financial Review – Page: 13 & 16 : 9-Apr-18

Matt Comyn will formally succeed Ian Narev as CEO of the Commonwealth Bank of Australia on 9 April. His immediate priority is expected to be taking action to address the damage that a series of scandals have caused to CBA’s reputation. However, Yarra Capital Management’s MD Dion Hershan says CBA remains a strong business with a sound strategy, and any damage to its reputation is likely to be temporary. Meanwhile, Hamish Chalmers of Watermark Funds Management says reducing costs should be CBA’s priority over the next five years.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, YARRA CAPITAL MANAGEMENT, WATERMARK FUNDS MANAGEMENT PTY LTD, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, ABN AMRO BANK NV, ING BANK NV