GOVERNMENTAL INVESTIGATIONS – AUSTRALIA

Banks surge after royal pardon

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Original article by David Rogers, Richard Gluyas
The Australian – Page: 19 & 23 : 6-Feb-19

Jon Mott of UBS has described the final report of the financial services royal commission as a "clear win" for Australia’s banks, saying its recommendations did not meet market expectations. Investors agreed, with shares in the banks and wealth managers AMP and IOOF Holdings rallying on 5 February. Brian Johnson of CLSA says bank stocks could rise further, as the market had priced in more onerous recommendations by commissioner Kenneth Hayne.

CORPORATES
UBS HOLDINGS PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, CLSA AUSTRALIA PTY LTD, AMP LIMITED – ASX AMP, IOOF HOLDINGS LIMITED – ASX IFL, STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN FINANCE GROUP LIMITED – ASX AFG, MORTGAGE CHOICE LIMITED – ASX MOC, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS

Criminal cases will take a decade to resolve

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Original article by Ben Butler
The Australian – Page: 5 : 5-Feb-19

The banking royal commission’s final report has recommended criminal charges against two unnamed financial institutions over the fee-for-no-service scandal. Commissioner Kenneth Hayne has also indicated that the Australian Securities & Investments Commission is considering charges against a third, while 15 financial institutions have been referred to ASIC and the Australian Prudential Regulation Authority for further investigation. Professor Dimity Kingsford Smith from the University of New South Wales says it may take up to 10 years for all of the proposed criminal proceedings to be completed.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, UNIVERSITY OF NEW SOUTH WALES, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AMP LIMITED – ASX AMP, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, IOOF HOLDINGS LIMITED – ASX IFL, ALLIANZ AUSTRALIA LIMITED, TAL HOLDINGS, YOUI PTY LTD

Parties gear up for bank-bashing poll

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Original article by Ben Packham, Joe Kelly
The Australian – Page: 6 : 5-Feb-19

Treasurer Josh Frydenberg has indicated that the federal government will "act on" all 76 recommendations of the financial services royal commission’s final report. However, the limited number of scheduled parliamentary sittings prior to the election means the government will not have much scope to pursue legislative reforms in its current term in office. Shadow treasurer Chris Bowen says Labor will embrace all of commissioner Kenneth Hayne’s recommendation, and he has invited the Coalition to open a dialogue with Labor about reforms that can be implemented before the election.

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

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

ASIC to clarify lending rules post Hayne

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 1-Feb-19

The Australian Securities & Investments Commission is expected to issue revised guidelines covering banks and their responsible lending obligations in coming weeks. The new guidelines are expected to be one of the first regulatory responses to the banking royal commission’s final report, which is due to be released on 4 February. The guidelines are likely to state that it is permissible for banks to use technology to help them to make more speedy decisions on loan applications.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTPAC BANKING CORPORATION – ASX WBC, FEDERAL COURT OF AUSTRALIA, JP MORGAN AUSTRALIA LIMITED

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

Banks not to blame for house slump

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Original article by James Frost, James Thomson
The Australian Financial Review – Page: 1 & 8 : 31-Jan-19

Westpac CEO Brian Hartzer has refuted suggestions that the bank has become more averse to approving loans as a result of the financial services royal commission. He says Westpac’s loan approval rates remain unchanged, and it is simply that fewer people are applying for loans. He also refutes claims that banks are responsible for the recent decline in house prices, arguing that it is merely an "orderly adjustment" to the housing price cycle. Hartzer adds that further regulation of lenders could prompt more customers to switch to so-called shadow banks.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, 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, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. PRODUCTIVITY COMMISSION

Banks under fire: investigations laid bare by regulator

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Original article by Ben Butler
The Australian – Page: 17 & 21 : 30-Jan-19

Documents released by the financial services royal commission show that the Australian Securities & Investments Commission’s enforcement committee approved the prosecution of National Australia Bank for breaching its financial services licence in June 2018. The committee found that NAB had repeatedly failed to comply with laws requiring it to report serious breaches of its licence within 10 days. NAB’s compliance record also came under scrutiny by the royal commission in August.

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, RIO TINTO LIMITED – ASX RIO, TENNIS AUSTRALIA, FEDERAL COURT OF AUSTRALIA, TRIO CAPITAL LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, VAN EYK CAPITAL PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA