GOVERNMENTAL INVESTIGATIONS – AUSTRALIA

AMP still taking fees from the dead

roymorgansocial Leave a comment

Original article by Ben Butler, Michael Roddan
The Australian – Page: 3 : 18-Sep-18

Paul Sainsbury, the head of wealth management at AMP, appeared before the banking royal commission on 17 September. He told the inquiry that AMP had been charging life insurance customers a fee even after being informed that they had died. Sainsbury said the practice had been occurring since 2016, and the extent of the problem had been discovered after the royal commission was told earlier in 2018 that the Commonwealth Bank had engaged in similar practices.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, DOVER FINANCIAL ADVISERS PTY LTD, ALLIANZ AUSTRALIA LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BORAL LIMITED – ASX BLD, COCA-COLA AMATIL LIMITED – ASX CCL

Hayne to leave banks with billion-dollar bill

roymorgansocial Leave a comment

Original article by Angus Grigg, James Eyers, Edmund Tadros
The Australian Financial Review – Page: 1 & 8 : 17-Sep-18

Australia’s major banks face years of litigation and costly settlements as a result of the banking royal commission. Law firm Maurice Blackburn has already flagged plans for legal action over a number of issues, including the calculation of household expenses prior to loans being approved. Omkar Joshi of Regal Funds Management says he is reminded of the UK’s payment-protection insurance scandal, which ended up costing UK banks Stg40 billion. Hugh Giddy of Investors Mutual says it is hard to deny that banks have made loans to some people who were not in a position to borrow money.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, MAURICE BLACKBURN PTY LTD, REGAL FUNDS MANAGEMENT PTY LTD, INVESTORS MUTUAL LIMITED, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, LLOYDS BANK PLC, OLIVER WYMAN GROUP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, SLATER AND GORDON LIMITED – ASX SGH, CORELOGIC AUSTRALIA PTY LTD

Insurer bullied nurse to stop claim

roymorgansocial Leave a comment

Original article by Elizabeth Redman,{SHARE}Michael Roddan
The Australian – Page: 2 : 14-Sep-18

The financial services royal commission heard evidence on 13 September that TAL paid a private investigator $20,000 to follow a person after it had reluctantly paid out her claim on a mental health policy. The commission heard that TAL, which has around 18 per cent of the life insurance market, had to be taken before the Financial Ombudsman Service before it would agree to pay the claim. The commission also heard evidence that Comminsure rejected a claim from a breast cancer sufferer because her operation was not deemed "radical" enough, despite there being no definition of "radical breast surgery" in its policy documents.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY,{SHARE}TAL LIMITED,{SHARE}COMMINSURE,{SHARE}FINANCIAL OMBUDSMAN SERVICE LIMITED

PM apologises for lack of action on banks

roymorgansocial Leave a comment

Original article by Michael Roddan, Elizabeth Redman
The Australian – Page: 2 : 13-Sep-18

Prime Minister Scott Morrison told question time on 12 September that he regretted not holding the banking royal commission sooner. He described as appalling the evidence concerning the treatment of Baptist minister Grant Stewart who had tried to get Freedom Insurance staff to cancel a useless life insurance policy sold to his Down Syndrome son, with one employee calling Stewart a "bloody whinger". Treasurer Josh Frydenberg was highly critical of the misconduct of life insurer ClearView, which has admitted to 300,000 alleged breaches of criminal law over the provision of unsolicited advice.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, FREEDOM INSURANCE GROUP LIMITED – ASX FIG, CLEARVIEW WEALTH LIMITED – ASX CVW

Sack them all, says insurance boss

roymorgansocial Leave a comment

Original article by Michael Roddan, Elizabeth Redman
The Australian – Page: 2 : 11-Sep-18

The banking royal commission commenced its investigation into the life insurance sector on 10 September. Senior counsel assisting the commission, Rowena Orr QC noted the industry had paid $6 billion worth of commissions to financial planners over the five years to 2017, suggesting this was a key factor behind the sector’s unethical behaviour. ClearView chief risk officer Greg Martin admitted to the commission that it had breached anti-hawking laws more than 300,000 times, and that it had a "full on sales" culture.

CORPORATES
AUSTRALIA. JOINT COMMITTEE OF PUBLIC ACCOUNTS AND AUDIT, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CLEARVIEW WEALTH LIMITED – ASX CVW

Shorten: extend Hayne probe

roymorgansocial Leave a comment

Original article by Tom McIlroy
The Australian Financial Review – Page: 9 : 5-Sep-18

Labor leader Bill Shorten has called on Prime Minister Scott Morrison to extend the banking royal commission’s current reporting deadline. The commission, which is headed by former High Court Judge Kenneth Hayne, is due to present an interim report in October, and to present its final report by 1 February 2019. Shorten, who was speaking on 4 September, says the victims of banking misconduct must be given more opportunity to have their grievances heard, and that as well as giving the commission more time, it should also travel to regional centres.

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

PM’s threat riles energy industry

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 4-Sep-18

Prime Minister Scott Morrison warned energy companies on 3 September that he may impose a royal commission on them if they do not react favourably to measures aimed at reducing electricity prices. Australian Energy Council CEO Sarah McNamara said she does not believe a royal commission into the sector is needed, given the number of inquiries that it has been subject to, including the Australian Competition & Consumer Commission’s recent major review. Morrison said he was putting the big power companies "on notice".

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN ENERGY COUNCIL, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Costello slams ASIC for banks’ appalling acts

roymorgansocial Leave a comment

Original article by Joanna Mather, Jonathan Shapiro
The Australian Financial Review – Page: 11 : 30-Aug-18

Future Fund chairman Peter Costello says the banking royal commission should look into the failings of the Australian Securities & Investments Commission in responding to misconduct in the financial services sector. The former federal treasurer argues that while the misconduct of banks has been appalling, ASIC bears some responsibility for allowing it to occur. Costello forecasts that the royal commission will result in lower profits in the banking sector, while financial advice will cost more and it will become harder to obtain credit.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC

Exposure was good for banks: Elliott

roymorgansocial Leave a comment

Original article by Richard Gluyas
The Australian – Page: 21 : 24-Aug-18

ANZ Bank CEO Shayne Elliott has no regrets about his involvement in calling for the financial services royal commission, even though the evidence it has presented has been "confronting". The CEOs and chairmen of the major banks urged Treasurer Scott Morrison to hold the inquiry in a letter sent to him in November 2017. They noted that confidence in the financial system was being hurt by the ongoing speculation about the prospect of a royal commission.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE TREASURY

NAB withheld size of fee scandal from ASIC for 11 months

roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 2 : 22-Aug-18

Australian financial services providers could be forced to repay clients more than $1bn over the fee-for-no-service scandal. The Australian Securities & Investments Commission’s deputy chairman Peter Kell has told the banking royal commission that just $260m has been refunded to date. Meanwhile, National Australia Bank informed ASIC in early November 2016 that clients affected by the scandal were owed $34.6m, but ASIC contends that NAB was aware of the extent of these liabilities some 11 months earlier. ASIC’s first report on the scandal had estimated that NAB owed just $12m.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP