FINANCIAL SERVICES INDUSTRY – GOVERNMENT POLICY – AUSTRALIA

Labor to ban debit card surcharges

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Original article by James Eyers, Lucas Baird, John Kehoe
The Australian Financial Review – Page: 1 & 18 : 15-Oct-24

The Reserve Bank of Australia will launch a review of payment costs for retailers, with the announcement of its review coming as the federal government flags its intention to ban debit card surcharges. A ban on these surcharges would impact many retailers, who currently pass them on to consumers; it is estimated that consumers are paying $1.5 billion annually on debit and credit card surcharges. The ban could be implemented from the start of January 2026, subject to consulation with the RBA, while the government will give the Australian Competition & Consumer Commission an additional $2.1 million to crack down on excessive surcharge fees.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Jail time for rate riggers

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Original article by Phillip Coorey, Primrose Riordan
The Australian Financial Review – Page: 1 & 6 : 4-Oct-16

The Australian Government will implement the Council of Financial Regulators’ recommendations on sanctions for manipulating the bank bill swap rate. The reforms will include a new regulatory regime for administrators of financial benchmarks such as the BBSW, as well as criminal penalties for those found to have manipulated such benchmarks. Westpac, ANZ Bank and National Australia Bank are all under scrutiny for allegedly manipulating the BBSW between 2010 and 2012.

CORPORATES
COUNCIL OF FINANCIAL REGULATORS, AUSTRALIA. DEPT OF THE TREASURY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, FINANCE AND PUBLIC ADMINISTRATION, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, LIBERAL PARTY OF AUSTRALIA

Murray reforms to end super’s ‘closed shop’

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Original article by Joanna Mather, James Eyers, Sally Rose
The Australian Financial Review – Page: 1 & 4 : 21-Oct-15

The Australian Government will fully or partially adopt 42 of the financial system inquiry’s recommendations. These include opening the default superannuation fund regime – which is currently dominated by industry funds – to greater competition, including banks and other owners of retail super funds. However, the Government will not implement a recommendation to ban self-managed super funds from borrowing to invest in property.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. PRODUCTIVITY COMMISSION, COUNCIL OF FINANCIAL REGULATORS, AUSTRALIAN LABOR PARTY, INDUSTRY SUPER AUSTRALIA PTY LTD, FINANCIAL SERVICES COUNCIL, AMP LIMITED – ASX AMP

Big business will have to pay for ASIC

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Original article by Patrick Durkin
The Australian Financial Review – Page: 1 : 28-Aug-15

The Australian Securities & Investments Commission would be funded by a user-pays system under a plan proposed by the Federal Government. Big business, banks and the financial services sector would carry the biggest burden under the plan, with a maximum levy of $A320,000 a year on companies with a market capitalisation of more than $A15 billion. A discussion paper to be released by Assistant Treasurer Josh Frydenberg sets a deadline of 9 October 2015 for submissions.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN BANKERS’ ASSOCIATION, ASX LIMITED – ASX ASX, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, SUNCORP GROUP LIMITED – ASX SUN, WESTFIELD CORPORATION – ASX WFD, TRANSURBAN GROUP LIMITED – ASX TCL, AMP LIMITED – ASX AMP, BRAMBLES LIMITED – ASX BXB, AMCOR LIMITED – ASX AMC

Speed urged on investment reform

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 7-Aug-15

The Opposition has urged the Australian Government not to delay the changes that would enable the creation of "collective investment vehicles". The changes are necessary if Australian funds are to benefit from the liberalisation of funds management in Asia and the introduction of the Asian Region Funds Passport in 2016. Shadow treasurer Chris Bowen says the Australian Labor Party is willing to cooperate with the Government on this issue.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, FINANCIAL SERVICES COUNCIL, AUSTRALIAN LABOR PARTY, SCHRODER INVESTMENT MANAGEMENT AUSTRALIA LIMITED

Deposits levy to hurt big credit unions’ profit

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Original article by Shaun Drummond
The Australian Financial Review – Page: 19 : 15-May-15

The Customer Owned Banking Association believes that the proposed deposits levy will reduce the annual profits of many small credit unions by around seven per cent. CUA estimates that its earnings will be cut by about six per cent, while People’s Choice Credit Union anticipates that its profit will be reduced by 5-7 per cent. The Australian Government will issue its response to the financial system inquiry before deciding whether to proceed with the levy.

CORPORATES
CUSTOMER OWNED BANKING ASSOCIATION, CREDIT UNION AUSTRALIA LIMITED, PEOPLE’S CHOICE CREDIT UNION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Credit card bank licences to go

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Original article by Shaun Drummond
The Australian Financial Review – Page: 15 : 14-Oct-14

The Australian Government has accepted the Reserve Bank’s recommendation to scrap the requirement for companies that issue credit cards to hold a bank licence. Finance Minister Mathias Cormann says the move will increase competition by attracting new entrants to the credit card market and result in lower fees for consumers and retailers. However, some experts doubt that the reforms will lead to greater competition

CORPORATES
AUSTRALIA. DEPT OF FINANCE, RESERVE BANK OF AUSTRALIA, VISA INTERNATIONAL, MASTERCARD AUSTRALIA LIMITED, RFI CONSULTING PTY LTD, GE CAPITAL AUSTRALIA, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, TYRO PAYMENTS, SQUARE PTY LTD, PAYVISION, AIRPLUS INTERNATIONAL

Murray debate off course: Maxsted

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Original article by Richard Gluyas
The Australian – Page: 19 : 10-Oct-14

The financial system review conducted by David Murray for the Australian Government is widely expected to recommend stricter capital requirements for the banking sector, in line with global regulation efforts. However Lindsay Maxsted, chair of Westpac Banking, argues that this would be short-sighted and neglect to take into account the important role banks play in financially supporting businesses and the economy. Leading staff from the four major lenders have held talks with Murray on the issue

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, TRANSURBAN GROUP LIMITED – ASX TCL, GROUP OF TWENTY (G-20)

BCA cautions against hasty bank reforms

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Original article by Annabel Hepworth
The Australian – Page: 19 : 9-Sep-14

The Business Council of Australia (BCA) has lodged its submission for the second round of the Federal Government’s new financial system review, conducted by ex-Commonwealth Bank of Australia CEO David Murray. The BCA argues against more stringent capital requirements for large banks, as this could have a knock-on effect on all enterprises via higher borrowing costs. The issue of how to handle banks deemed "too big to fail" will also be discussed at the upcoming Group of 20 summit in Australia

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BUSINESS COUNCIL OF AUSTRALIA, GROUP OF TWENTY (G-20), MOODY’S INVESTORS SERVICE INCORPORATED

Little joy for big four in Moody’s assessment

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Original article by Michael Bennet
The Australian – Page: 19 : 5-Aug-14

Credit ratings agency Moody’s Investors Service has commented on the findings of the Australian Government’s financial system inquiry. Its chair, David Murray, had rejected claims by the four main banks that they were facing an unduly harsh regulatory burden in the local roll-out of the Basel III reforms for the sector. Banks with domestic systemic importance, or those deemed "too big to fail", must increase their tier-one capital ratios. However Moody’s notes that its data show banks of a similar size overseas are no better off, and worse in the UK and Canada

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, UBS HOLDINGS PTY LTD