ETC – AUSTRALIA

ANZ scraps product-linked bonus score

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Original article by Alice Uribe
The Australian Financial Review – Page: 15 & 19 : 7-May-18

The ANZ Bank has announced that it will sack financial planners who twice fail a compliance audit, as the banking royal commission continues to reverberate among Australia’s 25,000 financial planners. ANZ has also announced that it will abolish product-linked bonuses for its financial planners, with CEO Shayne Elliott stating that the problems that the royal commission has revealed regarding financial planners have been created by a structure that rewards them for selling products.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, IOOF HOLDINGS LIMITED – ASX IFL

Rare allies back a Big Australia

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Original article by Simon Evans
The Australian – Page: 1 & 10 : 4-May-18

The ACTU, United Voice and the Australian Industry Group are among the organisations that will sign a National Compact on Permanent Migration. The compact, which is an initiative of the Migration Council, calls for the existing goal of a yearly permanent migrant intake of 190,000 to be retained, with future numbers to be adjusted in proportion to the population. The compact is seen as a "circuit breaker" to the current debate on immigration, which has developed overtones of xenophobia, while it contains a consensus between business and union bodies on temporary migration programs, but with such programs being more strongly scrutinised.

CORPORATES
ACTU, UNITED VOICE, THE AUSTRALIAN INDUSTRY GROUP, MIGRATION COUNCIL OF AUSTRALIA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIA. DEPT OF THE TREASURY, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, AUSTRALIAN LABOR PARTY, FEDERATION OF ETHNIC COMMUNITIES COUNCIL OF AUSTRALIA, SETTLEMENT COUNCIL OF AUSTRALIA, WELCOME TO AUSTRALIA

CBA stung: pay cuts for executives

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Original article by Andrew White
The Australian – Page: 1 & 6 : 2-May-18

The Commonwealth Bank of Australia will implement all 35 recommendations of an independent panel that was commissioned to examine its governance, culture and accountability. CEO Matt Comyn says the bank has already made a number of changes since the report was commissioned by the Australian Prudential Regulation Authority in the wake of Austrac’s money-laundering investigation. Amongst other things, senior executives will not receive bonuses and some have agreed to a pay cut.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA

Call for clean-out of AMP board

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Original article by Andrew White
The Australian – Page: 17 & 21 : 1-May-18

Institutional investors say further boardroom changes are needed at AMP following the resignation of chair Catherine Brenner in the wake of the banking royal commission’s revelations. First Super CEO Bill Watson still intends to vote against the election of three directors at the upcoming AGM, arguing that AMP directors must be held accountable. Australian Council of Superannuation Investors CEO Louise Davidson says AMP should also look at stripping bonuses from executives who were involved in the fees-for-no-service scandal. AMP has appointed Mike Wilkins as executive chairman.

CORPORATES
AMP LIMITED – ASX AMP, FIRST SUPER PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ART GALLERY OF NEW SOUTH WALES, BORAL LIMITED – ASX BLD, COCA-COLA AMATIL LIMITED – ASX CCL, CLAYTON UTZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, IMF BENTHAM LIMITED – ASX IMF, PHI FINNEY McDONALD, SHINE LAWYERS, SLATER AND GORDON LIMITED – ASX SGH, QUINN EMANUEL URQUHART AND SULLIVAN LP

Rio Tinto climate policy resolution expected to fall short

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 1-May-18

A motion calling for Rio Tinto to review its relationship with industry groups will be put it shareholders at its AGM on 2 May. The motion has been filed by the Australasian Centre for Corporate Responsibility and has the support of investors such as HESTA and the California Public Employees’ Retirement System. However, other Rio Tinto investors are expected to vote against it, and the motion is not expected to secure a majority. Nonetheless, ACCR executive director Brynn O’Brien will deem the motion to have been a success if 10 per cent of Rio Tinto’s shareholders vote for it.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, CALIFORNIA PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, LGIM, AEGON ASSET MANAGEMENT LIMITED, BHP BILLITON LIMITED – ASX BHP, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIANSUPER PTY LTD

FPA preoccupied with hiding adviser’s identity

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Original article by Joanna Mather, Fiona Buffini
The Australian Financial Review – Page: 4 : 27-Apr-18

The Financial Planning Association requested that the banking royal commission keep confidential the details of a member who is the subject of disciplinary action. The financial planner in question, Sam Henderson, is also the subject of disciplinary action by the SMSF Association. He contributes articles on financial planning to a weekend newspaper and he has a television show on Sky News. The FPA’s action against Henderson was prompted by advice he gave that had the potential to reduce a client’s superannuation benefit by $A500,000.

CORPORATES
FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, SMSF ASSOCIATION, SKY NEWS, ASSOCIATION OF FINANCIAL ADVISERS LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

ACSI backs Rio lobby group review

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Original article by James Thomson
The Australian Financial Review – Page: 21 : 20-Apr-18

The Australasian Centre for Corporate Responsibility and Local Government Super will ask Rio Tinto shareholders to back a motion calling for the mining giant to review its relationship with industry groups. BHP Billiton undertook such a review after the ACCR instigated a similar push prior to its AGM in November. The Australian Council of Superannuation Investors is understood to be supportive of the ACCR’s motion at Rio Tinto’s AGM, which will be held in May. BHP’s review prompted it to leave the World Coal Association.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALASIAN CENTRE FOR CORPORATE RESPONSIBILITY, LGSS PTY LTD, BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, WORLD COAL ASSOCIATION, UNITED STATES CHAMBER OF COMMERCE, MINERALS COUNCIL OF AUSTRALIA, GLASS LEWIS AND COMPANY LLC

Toyota latest to dismiss Warner

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Original article by Nick Tabakoff
The Australian – Page: 7 : 6-Apr-18

Disgraced former vice-captain David Warner has advised that he will not challenge a 12-month ban imposed by Cricket Australia for his role in the ball-tampering scandal. Meanwhile, car-maker Toyota has terminated its sponsorship deal with the batsman, after Asics and LG also ended their association with him in the wake of the scandal. Prior to the ball-tampering affair, Warner had been on track to earn around $A6m in 2018 from sponsorship deals and contracts with CA and the Indian Premier League.

CORPORATES
CRICKET AUSTRALIA, TOYOTA MOTOR CORPORATION AUSTRALIA LIMITED, ASICS, LG ELECTRONICS AUSTRALIA PTY LTD, INDIAN PREMIER LEAGUE, NESTLE AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, WOOLWORTHS GROUP LIMITED – ASX WOW

APRA targets banker bonuses

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: W1 & W2 : 5-Apr-18

A review of remuneration in the banking, insurance and superannuation industry shows that senior executives are rarely penalised financially for poor risk management practices or misconduct among staff within their purview. Wayne Byers, the chairman of the Australian Prudential Regulation Authority – which undertook the review – says bank executives should be held more accountable, calling for their bonuses to be deferred or forgone. Frank Mirenzi of Moody’s Investors Service notes that many countries have cracked down on executive pay in the banking sector in the wake of the global financial crisis.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, WESTPAC BANKING CORPORATION – ASX WBC

Woodside rejigs pay to drive discipline

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Original article by Samantha Bailey
The Australian – Page: 20 : 20-Mar-18

Woodside Petroleum CEO Peter Coleman was paid a total of $A10.3m in 2017, including almost $A4m in incentives. Some two-thirds of Coleman’s short-term incentives were paid in cash, but his future cash bonuses will be restricted to 12.5 per cent under Woodside’s revised executive incentive structure. Other key executives will also be restricted to cash bonuses of 12.5 per cent. The changes follow a review of Woodside’s incentive plan in 2017.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL