CORPORATE GOVERNANCE – AUSTRALIA

ASIC eyes case against CBA board

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Original article by Anne Hyland
The Australian Financial Review – Page: 1 & 12 : 11-Aug-17

The Australian Securities & Investments Commission may be contemplating action against Commonwealth Bank of Australia directors in regard to its money-laundering problems. Lawyers suggest that there could be certain areas that ASIC could focus on when considering such action, including the level of the CBA’s disclosure concerning AUSTRAC’s allegations against it. CBA chair Catherine Livingstone has been told that the Federal Government is still considering its options in regard to what actions to take against the bank.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COMMINSURE, STORM FINANCIAL LIMITED, UNIVERSITY OF MELBOURNE

Banks growl at BEAR necessities

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 26 : 2-Aug-17

Australian banks have expressed concern about the Federal Government’s proposed Banking Executive Accountability Regime. Criticisms include the lack of sufficient industry consultation and the fact that while non-bank financial services providers such as insurers will be excluded from the regime, it will apply to such businesses that are owned by banks. The Australian Bankers’ Association has also questioned the length of consultation period, although it is generally supportive of the push to increase the accountability of bank executives.

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY, CUSTOMER OWNED BANKING ASSOCIATION

BHP slip-up to provide more ammo for Elliott

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 21-Jul-17

BHP Billiton has restated its 2016 financial accounts after conceding that there were problems with the processes it had used to determine the impairment charges on US shale assets. Ross Illingworth, the executive director of Kingfisher Capital Partners, says the admission will strengthen Elliott Management’s case for a restructuring at BHP. Meanwhile, Elliott has likened BHP’s proposal to develop the Jansen potash project in Canada to its ill-fated foray into US shale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, KINGFISHER CAPITAL PARNERS, ELLIOTT MANAGEMENT CORPORATION

Report pans banks’ reform resistance

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Original article by Richard Gluyas
The Australian – Page: 21 : 26-Apr-17

The ANZ Bank is the only major Australian bank to have supported the key recommendations of the House of Representatives economics committee’s first report on increasing competition and governance in the industry. The recommendations included measures to make bank executives more accountable for the misconduct of employees. The Australian Labor Party still maintains the need for a royal commission into the banking sector.

CORPORATES
AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN LABOR PARTY, AUSTRALIAN BANKERS’ ASSOCIATION, LIBERAL PARTY OF AUSTRALIA

Rio unveils a higher vision after scandals

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Original article by Matt Chambers
The Australian – Page: 19 & 30 : 25-Nov-16

CEO Jean-Sebastien Jacques used Rio Tinto’s investor presentation on 24 November 2016 to reveal that the resources giant will launch a revised mission statement in January 2017. He said the "vision and values" statement will reflect the miner’s "higher purpose" rather than focusing on shareholder value. Jacques also stressed the importance of Rio Tinto’s code of conduct, particularly in the wake of the payments scandal concerning the Simandou iron ore project. Jacques also aims to lift annual cash flow by at least $US5bn over the next five years.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CITIGROUP PTY LTD

Sacked Rio exec set for legal stoush

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 12 : 18-Nov-16

Bold Baatar will succeed Alan Davies as CEO of Rio Tinto’s energy and minerals division, after the latter was dismissed following an internal investigation into a scandal regarding the Simandou iron ore project in Guinea. Davies has criticised Rio’s handling of the investigation, and he intends to take legal action over his dismissal. Rio has also sacked its head of legal affairs, Debra Valentine. The $US10.5m payment to a consultant in Guinea has been referred to regulatory authorities in Australia, the US and the UK.

CORPORATES
RIO TINTO LIMITED – ASX RIO, THE MELBOURNE MINING CLUB, AUSTRALIAN FEDERAL POLICE

Email trail led to Rio’s bribery investigation

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Original article by James Chessell
The Australian Financial Review – Page: 23 & 26 : 11-Nov-16

Francois de Combret has been named as the consultant who received a $US10.5m ($A13.7m) payment from Rio Tinto in connection with its Simandou iron ore project in Guinea. Rio Tinto executive Alan Davies has been suspended in the wake of revelations that the resources group is investigating the payment. It has also been revealed that former Rio Tinto CEOs Tom Albanese and Sam Walsh were involved in email discussions with Davies regarding the payment. Walsh was the head of the group’s iron ore division at the time.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, UNITED STATES. DEPT OF JUSTICE, GREAT BRITAIN. SERIOUS FRAUD OFFICE, BSG RESOURCES LIMITED, INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES, LAZARD LLC, UBS AG, VEDANTA RESOURCES PLC

Buck doesn’t stop with top execs

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Original article by Richard Gluyas
The Australian – Page: 25 : 11-Nov-16

When the CEOs of Australia’s four major banks appeared before an economics committee in October 2016 they revealed that no senior executives have been sacked over scandals that have plagued the sector. National Australia Bank has sacked 43 financial planners, while Westpac has sacked 139 of the 885 employees it has investigated for potential breaches of its code of conduct. Meanwhile, just 16 of the employees that have been dismissed by the Commonwealth Bank were executive managers.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMINSURE, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, FINANCE AND PUBLIC ADMINISTRATION, LIBERAL PARTY OF AUSTRALIA

Bank culture won’t change overnight: PM

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Original article by Phillip Coorey
The Australian Financial Review – Page: 8 : 6-Oct-16

Prime Minister Malcolm Turnbull says Australian banks require more accountability and transparency. He is confident that requiring the "big four" CEOs to front a parliamentary committee at least once a year will facilitate this, although he concedes that it will take some time for the culture within banks to change. The Federal Government also proposes to create a new tribunal for aggrieved customers to seek restitution, which was backed by Commonwealth Bank CEO Ian Narev and ANZ Bank CEO Shayne Elliott when they fronted the committee.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, LIBERAL PARTY OF AUSTRALIA, TIMBERCORP LIMITED

Guvera committed to stockmarket listing

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Original article by David Swan
The Australian – Page: 19 : 14-Jun-16

Guvera CEO Darren Herft says the streaming music provider intends to proceed with its proposed IPO. The Australian Securities & Investments Commission has subjected the group’s prospectus to increased scrutiny, but Herft says Guvera is co-operating with ASIC to address its concerns. However, Guvera’s former commercial officer Michael Wallis-Brown disputes the number of active users that is claimed in the prospectus, and says the IPO should not proceed.

CORPORATES
GUVERA LIMITED – ASX GUV, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION