GOVERNMENTAL INVESTIGATIONS – AUSTRALIA

Bank probe a funding risk

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Original article by Tom McIlroy, Jonathan Shapiro
The Australian Financial Review – Page: 1 & 4 : 16-Jan-18

Fitch Ratings says Australian banks may face an increase in wholesale funding costs if the Federal Government’s royal commission further erodes trust in the sector. The ratings agency notes that the Australian banking sector is particularly reliant on offshore funding. Meanwhile, royal commissioner Kenneth Hayne is expected to seek public submissions shortly, but Small Business & Family Enterprise Ombudsman Kate Carnell says the inquiry must avoid being swamped by submissions. Financial services providers must lodge 50-page reports with the commission by the end of January.

CORPORATES
FITCH RATINGS LIMITED, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, HIGH COURT OF AUSTRALIA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Bank inquiry’s massive dragnet

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Original article by Richard Gluyas
The Australian – Page: 13 & 16 : 21-Dec-17

The royal commission into financial services will require banks, insurers and superannuation funds to disclose any instances of misconduct since the start of 2008, and whether they are currently the subject of criminal or civil proceedings. Commissioner Kenneth Hayne has indicated that industry super funds will also be required provide an explanation for any expenditure that not is related to the fund’s administration or the payment of members’ benefits. Meanwhile, Small Business & Family Enterprise Ombudsman Kate Carnell, has reservations about a revised banking code of practice.

CORPORATES
AUSTRALIA. OFFICE OF THE AUSTRALIAN SMALL BUSINESS AND FAMILY ENTERPRISE OMBUDSMAN, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, HIGH COURT OF AUSTRALIA

Mortgage brokers added to banking inquiry purview

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Original article by James Frost
The Australian Financial Review – Page: 17 : 20-Dec-17

Commissioner Kenneth Hayne has broadened the banking royal commission’s terms of reference to include the $A344 billion mortgage broking sector. Many had been surprised that the sector was not included in the royal commission’s original terms of reference, given that over 50 per cent of all mortgages are generated via mortgage brokers. Mortgage & Finance Association of Australia CEO Mike Felton contends that the sector’s professional standards are improving, while he notes that it has been the subject of two major reviews in the last 18 months.

CORPORATES
MORTGAGE AND FINANCE ASSOCIATION OF AUSTRALIA, MORTGAGE CHOICE LIMITED – ASX MOC, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIA. DEPT OF THE TREASURY

Banks inquiry top concern of US investors

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Original article by Michael Roddan
The Australian – Page: 21 : 5-Dec-17

Shares in Australia’s major banks have fallen in the wake of the Federal Government’s decision to hold a royal commission into the sector. Westpac CEO Brian Hartzer says the issue of a royal commission has been a key concern for US investors in recent weeks. Meanwhile, the Opposition and the Australian Greens have urged the Government to broaden the inquiry’s terms of reference.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF THE TREASURY

Bank probe hits union super

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Original article by Phillip Coorey, James Eyers
The Australian Financial Review – Page: 1 & 6 : 1-Dec-17

The federal government announced on 30 November that it would hold a royal commission into the financial services sector. The royal commission will cost $A75 million and run for 12 months. Its terms of reference are not as broad as the private members’ bill that Nationals Senator Barry O’Sullivan was looking to introduce and which was seen a major factor in Prime Minister Malcolm Turnbull and Treasurer Scott Morrison’s decision to hold a royal commission. The government’s decision to include an examination of union-backed industry superannuation funds as part of the commission’s terms of reference is seen as "payback" to Labor for its part in forcing the government to change its mind on the issue.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN GREENS, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, JCP INVESTMENT PARTNERS LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIAN BANKERS’ ASSOCIATION, WESFARMERS LIMITED – ASX WES, BANK OF QUEENSLAND LIMITED – ASX BOQ, FINANCE SECTOR UNION

Bank inquiry bad for business: Bligh

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Original article by Michael Roddan
The Australian – Page: 4 : 21-Nov-17

Australian Bankers’ Association CEO Anna Bligh says a royal commission into the banking sector could hurt the reputation of Australian banks overseas. Her comments come as the prospect of a royal commission or a commission of inquiry into the banking sector grows increasing likely. A spokesperson for the National Australia Bank said it did not think either type of commission was needed, contending that the banking sector is both well regulated and well governed.

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLSA AUSTRALIA PTY LTD, NATIONAL PARTY OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN GREENS

Senate inquiry to look at job hit from robotics

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Original article by Phillip Coorey
The Australian Financial Review – Page: 7 : 26-Oct-17

Labor’s Murray Watt will chair a Senate inquiry that will examine the impact of technologies such as automation and robotics on the Australian labour market, society and the broader economy. Ed Husic, the shadow minister for the future of work and the digital economy, has estimated that these technologies will affect the jobs of some 3.5 million Australians. He has warned that the Coalition is not doing enough to prepare the nation for the impact of technology-driven change.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NEW SOUTH WALES. DEPT OF EDUCATION AND COMMUNITIES, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIA. PRODUCTIVITY COMMISSION

Shorten faces ‘donation’ probe

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Original article by Brad Norington
The Australian – Page: 1 & 2 : 23-Oct-17

The Registered Organisations Commission is believed to be investigating a $A25,000 donation by the Australian Workers’ Union to the 2007 election campaign of current Opposition Leader Bill Shorten. He had been the head of the AWU at the time. The union also made large donations to the election campaigns of two other Labor candidates. The ROC recently began a separate probe into the AWU’s donation to activist group GetUp in 2006, whose board members at the time included Shorten. Labor MP Brendan O’Connor alleges that the ROC investigations are part of a smear campaign against Shorten.

CORPORATES
AUSTRALIA. REGISTERED ORGANISATIONS COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, GETUP LIMITED, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, AUSTRALIAN ELECTORAL COMMISSION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, HEALTH SERVICES UNION OF AUSTRALIA

Time is past for banks royal commission policy

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Original article by David Crowe
The Australian – Page: 2 : 1-Sep-17

Australian banks are attracting increased regulatory scrutiny in the wake of the Commonwealth Bank’s money-laundering scandal. This has weakened the Australian Labor Party’s case for a royal commission into banks, as such an inquiry would take some time to set up if Labor wins the next federal election. Meanwhile, Labor may not be able to act on the inquiry’s recommendations until after the following election. Labor increased the Australian Securities & Investments Commission’s regulatory powers when it was previously in government, and it could so again without the need for a royal commission.

CORPORATES
AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Taskforce seeks tobacco blitz

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Original article by Duncan Hughes
The Australian Financial Review – Page: 7 : 7-Aug-17

The Black Economy Taskforce’s chairman Michael Andrew says he plans to urge the Australian Government to clamp down on the illegal tobacco industry. A spokesperson for cigarette and tobacco company Philip Morris estimates that the illegal tobacco industry costs governments almost $A4 billion a year in foregone tobacco excise. The spokesperson adds that greater co-ordination between law enforcement bodies and regulators is needed to tackle the problem.

CORPORATES
PHILIP MORRIS (AUSTRALIA) LIMITED, AUSTRALASIAN ASSOCIATION OF CONVENIENCE STORES INCORPORATED, AUSTRALIAN LABOR PARTY, ATA INTERNATIONAL