FINANCIAL SERVICES INDUSTRY – AUSTRALIA – REGULATION

Murray wants banks to prepare for market correction

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Original article by James Eyers, Jacob Greber
The Australian Financial Review – Page: 1 & 6 : 22-Aug-14

The chairman of the financial system inquiry, David Murray, notes that Australia was largely unaffected by the global financial crisis. However, he warns that the domestic banking sector must take action to be ready for an eventual correction in asset prices, which have been boosted by stimulus measures in the wake of the crisis. Murray has previously noted that it could be necessary for banks to increase their capital reserves

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, RESERVE BANK OF AUSTRALIA

Time for discussion over the meaning of ‘too big to fail’

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Original article by James Eyers
The Australian Financial Review – Page: 10 : 16-Jul-14

David Murray, head of the new financial system review for the Australian Government, has raised the issue of banks being deemed "too big to fail". He noted that the "moral hazard" created by the Government guaranteeing deposits should be addressed, and that one solution could be to lift the fees charged to the banks in return for the support. The Australian Bankers’ Association concedes that a debate on the issue is needed, while the Customer Owned Banking Association believes Murray should have gone even further

CORPORATES
MACQUARIE BANK LIMITED – ASX MBL, AUSTRALIAN BANKERS’ ASSOCIATION, CUSTOMER OWNED BANKING ASSOCIATION, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, NATIONAL PRESS CLUB (AUSTRALIA), GROUP OF TWENTY (G-20)

CBA rip-off no setback to lighter rules

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Original article by Patrick Durkin, Jonathan Shapiro
The Australian Financial Review – Page: 3 : 30-Jun-14

The Commonwealth Bank of Australia scandal will not deter the Federal Government from its plan to lighten regulation of the financial planning sector. Federal Finance Minister Mathias Cormann said that regulation should be dropped if it increases the cost of financial advice without increasing consumer protection. However, Industry Super Australia CEO David Whiteley argued the matter shows that the Government should abandon its plan to change the Future of Financial Advice laws

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF FINANCE, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MAURICE BLACKBURN PTY LTD

ASIC won’t act on FoFA changes

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Original article by Sally Patten
The Australian Financial Review – Page: 20 : 23-Jun-14

Both new regulations and legislative amendments will be used by the Australian Government to change some aspects of the Future of Financial Advice (FoFA) laws, effective 1 July 2014. However, there is resistance to the amendments in the Senate by the Australian Labor Party, Australian Greens and Palmer United Party. The Australian Securities & Investments Commission is currently not penalising any breaches of those sections of the FoFA laws that are to be repealed, and will maintain this approach if the deadline of 1 July is missed by the Federal Government

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN GREENS, PALMER UNITED PARTY, FINANCIAL SERVICES COUNCIL, AUSTRALIAN FINANCIAL MARKETS ASSOCIATION INCORPORATED