FINANCIAL SERVICES INDUSTRY – AUSTRALIA – REGULATION

NAB singled out for most Hayne pain

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Original article by James Thomson
The Australian Financial Review – Page: W1 & W4 : 5-Feb-19

Key executives of National Australia Bank have been criticised in the financial services royal commission’s final report, including CEO Andrew Thorburn and chairman Ken Hendry. Commissioner Kenneth Hayne says the appearances of Thorburn and Henry before the inquiry raised questions as whether NAB had learnt from its past mistakes with regard to the fee-for-no-service scandal. However, Hayne noted that the evidence of Commonwealth Bank CEO Matt Comyn and ANZ counterpart Shayne Elliott showed that they understand the challenges that their banks face.

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

Less bad outcome a relief for banks

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Original article by David Rogers
The Australian – Page: 21 : 5-Feb-19

There is general consensus among equity analysts and portfolio managers that the final report of the financial services royal commission has not been as harsh on the banking sector as it could have been. Shares in the major banks and AMP are expected to rise when trading resumes on 5 February, although listed mortgage brokers are likely to face a sell-off after the inquiry recommended that brokers’ commissions paid by lenders be phased out in favour of ones paid by borrowers.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, NOMURA AUSTRALIA LIMITED, BELL DIRECT, TRIBECA INVESTMENT PARTNERS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, MORTGAGE CHOICE LIMITED – ASX MOC, AUSTRALIAN FINANCE GROUP LIMITED – ASX AFG

No mercy for unethical banks

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 4-Feb-19

Prime Minister Scott Morrison and Labor leader Bill Shorten have both made an in-principle commitment to implement all of the financial services royal commission’s recommendations. However, Morrison and Treasurer Josh Frydenberg say that any regulatory changes arising from the inquiry’s recommendations need to be balanced to prevent a further tightening of access to credit. Federal Parliament’s limited number of sitting days before the election means that both major parties will take their responses to the inquiry to the electorate. The inquiry’s final report will be publicly released after financial markets close on 4 February.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS

Hayne plan: trust, credit, competition

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Original article by Phillip Coorey, John Kehoe
The Australian Financial Review – Page: 1 & 4 : 1-Feb-19

Treasurer Josh Frydenberg has indicated that restoring consumers’ trust in banks will be a key focus of the federal government’s response to the final report of the financial services royal commission. He says the government will also aim to ensure that there is competition in the sector and that consumers and businesses continue to have access to credit. Meanwhile, shadow treasurer Chris Bowen says a Labor government would establish a taskforce to implement the inquiry’s recommendations, claiming that only Labor can restore the public’s trust in financial services providers.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD

Hayne’s grenade about to explode

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Original article by Joyce Moullakis
The Australian – Page: 15 & 23 : 18-Jan-19

The banking royal commission is due to present its final report to the federal government on 1 February, although it may be a day or two before the report is made public. There are a number of companies within the financial services sector whose share price could be impacted by the report’s content and recommendations, including AMP, IOOF and Mortgage Choice. Treasurer Josh Frydenberg has hinted that the report will be released outside of stock exchange trading hours, while he says the commission’s initial report and hearings have shown that certain financial institutions have not done a good job when it comes to treating Australians honestly and fairly.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP, IOOF HOLDINGS LIMITED – ASX IFL, MORTGAGE CHOICE LIMITED – ASX MOC, AUSTRALIA. DEPT OF THE TREASURY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN FINANCE GROUP LIMITED – ASX AFG, AUSTRALIAN LABOR PARTY, DEUTSCHE BANK AG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, GREAT BRITAIN. FINANCIAL CONDUCT AUTHORITY

No credit crunch: RBA blames investors for property slowdown

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Original article by Andrew White
The Australian – Page: 17 & 21 : 27-Nov-18

A regulatory crackdown on investor and interest-only property loans has seen growth in housing credit fall below five per cent in 2018, compared with around seven per cent in 2015. However, the Reserve Bank of Australia’s assistant governor Christopher Kent says high-quality borrowers can still gain access to credit at competitive rates. He notes that there appears to have been a larger fall in the average interest rate for investors than owner-occupiers in the last year.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY

APRA names panel, deadline for review

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Original article by Joyce Moullakis
The Australian – Page: 21 : 13-Nov-18

The Australian Prudential Regulation Authority has advised that deputy chairman John Lonsdale will head an advisory panel that will review its enforcement strategy. The members of the advisory panel are former judge Robert Austin, the ACCC’s Sarah Court and University of New South Wales professor Dimity Kingsford Smith. The review has been commissioned in response to criticism of APRA in the financial services royal commission’s interim report, which noted the regulator’s reluctance to prosecute banks and insurers for misconduct.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, SUPREME COURT OF NEW SOUTH WALES, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, UNIVERSITY OF NEW SOUTH WALES, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN LABOR PARTY

Bad bankers to be named and shamed

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Original article by Jeff Whalley
Herald Sun – Page: 26 : 1-Nov-18

Australian Financial Complaints Authority CEO David Locke says the new agency expects to handle 55,000 complaints from consumers and small businesses in its first year. The AFCA has been formed via the merger of the Financial Ombudsman Service, the Superannuation Complaints Tribunal and the Credit & Investments Ombudsman. Locke says he will be more open to "naming and shaming" wrongdoers in the financial services industry than the FOS, noting that the latter was restricted to doing so in annual reports. The number of complaints received by the FOS rose by 10 per cent during its last year of operation.

CORPORATES
AUSTRALIAN FINANCIAL COMPLAINTS AUTHORITY, FINANCIAL OMBUDSMAN SERVICE LIMITED, AUSTRALIA. SUPERANNUATION COMPLAINTS TRIBUNAL, CREDIT AND INVESTMENTS OMBUDSMAN, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

APRA examines enforcement failures after Hayne mauling

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Original article by John Kehoe
The Australian Financial Review – Page: 4 : 26-Oct-18

The Australian Prudential Regulation Authority has launched an internal review of its enforcement policies, following criticism from the banking royal commission. One issue that the review will look at is the use of court-imposed sanctions; the royal commission was very critical of APRA’s unwillingness to use this strategy as a tactic against financial institutions. APRA is also working with the Australian Securities & Investments Commission on the delineation of responsibilities between the two bodies, as well as increasing its scrutiny of the remuneration and incentive policies of financial institutions.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Payday lenders to face probe

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Original article by Michael Roddan
The Australian – Page: 21 : 18-Oct-18

The Senate will undertake an inquiry into payday lenders and short-term credit providers after the proposed probe was backed by the Greens and Centre Alliance. Payday lenders and so-called "buy now, pay later" credit providers were excluded from the financial services royal commission’s terms of reference. Shares in Afterpay Touch Group, Zip Co and Cash Converters fell sharply in response to news of the inquiry.

CORPORATES
AFTERPAY TOUCH GROUP LIMITED – ASX APT, ZIP CO LIMITED – ASX Z1P, CASH CONVERTERS INTERNATIONAL – ASX CCV, CREDIT CORP GROUP LIMITED – ASX CCP, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN GREENS, CENTRE ALLIANCE, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, THORN GROUP LIMITED – ASX TGA, RADIO RENTALS, NIMBLE PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN LABOR PARTY