FINANCIAL SERVICES INDUSTRY – AUSTRALIA

Murray in the crosshairs as battered AMP faces shareholder revolt

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

AMP could face a board spill at its 2019 annual meeting under the ‘two strikes’ regime, after more than 61 per cent of votes cast at the 2018 meeting rejected its remuneration report. The election of chairman David Murray is also uncertain, with at least two institutional investors said to be planning to vote against the resolution. They include Hamish Carlisle of Merlon Capital Partners, who opposes the election of Murray and non-executive director John O’Sullivan.

CORPORATES
AMP LIMITED – ASX AMP, MERLON CAPITAL PARTNERS PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RESOLUTION LIFE GROUP LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, ABERDEEN ASSET MANAGEMENT LIMITED, IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIAN ETHICAL INVESTMENT LIMITED – ASX AEF, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, FEDERAL COURT OF AUSTRALIA

Banks’ big legal year to get busier amid Hayne fallout

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Original article by Misa Han
The Australian Financial Review – Page: 17 : 15-Jan-19

Westpac, National Australia Bank, AMP and IOOF Holdings are among the financial services groups that will be subject to legal action in 2019. Further legal action in the sector is expected in the wake of the financial services royal commission. Josh Mennen of law firm Maurice Blackburn has flagged mortgage lending practices as an area that could attract legal action. There are also indications that the Australian Securities & Investments Commission will be more willing to pursue legal action against banks in 2019.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AMP LIMITED – ASX AMP, IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, MAURICE BLACKBURN PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SLATER AND GORDON LIMITED – ASX SGH, GILBERT AND TOBIN LAWYERS, HERBERT SMITH FREEHILLS PTY LTD, FEDERAL COURT OF AUSTRALIA, SUPREME COURT OF NEW SOUTH WALES, SWINBURNE UNIVERSITY OF TECHNOLOGY

AMP hotlines to bury fears of charging dead

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Original article by Duncan Hughes
The Australian Financial Review – Page: 4 : 3-Jan-19

Embattled financial services group AMP has implemented a range of measures aimed at avoiding a repeat of the scandal in which clients continued to be charged fees after they had died. Amongst other things, AMP has established a deceased estates hotline and an online services for administrators, executors and legal representatives of the deceased. AMP’s share price has fallen sharply in the wake of the financial services royal commission’s revelations, while five law firms are preparing class actions.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RESOLUTION LIFE GROUP LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COUNT FINANCIAL LIMITED

ASIC goes to court in AMP document hunt

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Original article by Ben Butler, Joyce Moullakis
The Australian – Page: 15 & 19 : 18-Dec-18

The Australian Securities & Investments Commission is seeking a court order to compel AMP to provide access to documents relating to the fees-for-no-service scandal. AMP contends that the transcripts of Clayton Utz’s interviews with AMP employees regarding the scandal are subject to legal professional privilege, which ASIC disputes. The financial services royal commission had been told that Clayton Utz’s report on the scandal had been altered following discussions with key AMP executives.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CLAYTON UTZ, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, FEDERAL COURT OF AUSTRALIA

AMP CEO De Ferrari won’t get a new life insurance deal

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Original article by Misa Han
The Australian Financial Review – Page: 15 : 6-Dec-18

Merlon Capital is among the AMP shareholders that oppose the sale of its life insurance business. However, AMP CEO Francesco De Ferrari says the $3.3bn deal will proceed, arguing that the wealth manager lacks the global scale to compete with much larger international rivals in the life insurance sector. De Ferrari has also expressed support for AMP’s vertically integrated business model, but says this will be unwound if the final report of the financial services commission recommends it.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, CREDIT SUISSE AG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MERLON CAPITAL PARTNERS PTY LTD

Banks receive the most gripes at new complaints authority

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Original article by Elouise Fowler
The Australian Financial Review – Page: 18 : 6-Dec-18

The Australian Financial Complaints Authority has received some 6,522 complaints from consumers and small business owners since it was established on 1 November. Banks were the source of 2,367 complaints during AFCA’s first month of operation, ahead of insurers with 1,159 complaints. AFCA replaced the Financial Ombudsman Service, the Credit & Investment Ombudsman and the Superannuation Complaints Tribunal.

CORPORATES
AUSTRALIAN FINANCIAL COMPLAINTS AUTHORITY, FINANCIAL OMBUDSMAN SERVICE LIMITED, CREDIT AND INVESTMENT OMBUDSMAN, AUSTRALIA. SUPERANNUATION COMPLAINTS TRIBUNAL

AMP’s new CEO starts in the hot seat

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Original article by Misa Han
The Australian Financial Review – Page: 15 & 20 : 3-Dec-18

Francesco De Ferrari starts his first day as CEO of AMP on 3 December, having previously been head of Credit Suisse’s Asia-Pacific private banking business. De Ferrari says he is determined to make the most of the impetus provided by the banking royal commission to bring about change in the way that AMP does business. Hamish Carlisle from Merlon Capital says De Ferrari should give AMP shareholders the opportunity to vote on the proposed sale of the AMP Life division, as well as renegotiating the deal if possible.

CORPORATES
AMP LIMITED – ASX AMP, AMP LIFE LIMITED, CREDIT SUISSE AG, MERLON CAPITAL PARTNERS PTY LTD, SHAW AND PARTNERS LIMITED, ATLAS FUNDS MANAGEMENT PTY LTD, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

Finance riddled with rent seekers

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Original article by Adam Creighton
The Australian – Page: 2 : 7-Nov-18

Productivity Commission chairman Michael Brennan says much of the Australian banking and wealth management industry’s revenue can be attributed to excessive fees that are a result of limited competition. Financial services is now the biggest sector of the domestic economy; it accounts for nearly nine per cent of economic output, compared with around four per cent in the early 1980s. Meanwhile, Brennan says that health and education reforms will be essential in lifting the nation’s productivity rate.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BANKING ASSOCIATION

Fundies blast AMP over $3.4b fire sale

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Original article by James Frost
The Australian Financial Review – Page: 1 & 22 : 31-Oct-18

Allan Gray Australia and Merlon Capital Partners are among the institutional investors that have criticised AMP’s proposal to divest its life insurance business. They believe that the $3.4bn sale price undervalues the life business, and Merlon has flagged the possibility of seeking an extraordinary general meeting to challenge the deal. Merlon has written to AMP arguing that the deal demonstrates a "reckless disregard" for shareholders’ funds, while Simon Mawhinney of Allan Gray describes it as a "disastrous deal" for AMP’s shareholders.

CORPORATES
AMP LIMITED – ASX AMP, ALLAN GRAY AUSTRALIA PTY LTD, MERLON CAPITAL PARTNERS PTY LTD, MACQUARIE COUNTRYWIDE MANAGEMENT LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESOLUTION LIFE GROUP LIMITED, AXA ASIA PACIFIC HOLDINGS LIMITED

AMP implodes as investors flee amid fund outflows

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Original article by Andrew White
The Australian – Page: 19 & 23 : 26-Oct-18

Wealth manager AMP has advised that its fund outflows totalled $1.5bn in the September quarter, compared with just $243m in the previous corresponding period. Acting CEO Mike Wilkins says lack of fund inflows is a bigger concern than the rise in outflows, adding that the problem is likely to persist until the financial services royal commission delivers its final report. AMP has also announced a $3.3bn deal to sell its life insurance business to Resolution Capital. AMP shares reached a record low on 25 October, reducing its market capitalisation by $2.3bn.

CORPORATES
AMP LIMITED – ASX AMP, AMP LIFE LIMITED, RESOLUTION CAPITAL LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE GROUP LIMITED – ASX MQG