INDEPENDENT REGULATORY COMMISSIONS – AUSTRALIA

Small banks aim at APRA

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 8 : 18-Sep-17

Bank of Queensland CEO Jon Sutton says caps imposed by the Australian Prudential Regulation Authority on investor lending make it hard for smaller banks to increase their market share. Bendigo & Adelaide Bank CEO Mike Hirst contends that APRA’s lending caps have required it to cut down on the number of loans it writes. Shadow treasurer Chris Bowen claims that the lines of responsibility between the various regulators of the financial services sector have become "blurred" in recent years.

CORPORATES
BANK OF QUEENSLAND LIMITED – ASX BOQ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN LABOR PARTY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, RESERVE BANK OF AUSTRALIA, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. PRODUCTIVITY COMMISSION, ME BANK, SUNCORP GROUP LIMITED – ASX SUN, AMP LIMITED – ASX AMP, ING BANK (AUSTRALIA) LIMITED, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

APRA probe risks CBA rating

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Original article by Jonathan Shapiro, Phillip Coorey, James Eyers
The Australian Financial Review – Page: 1 & 6 : 29-Aug-17

The Australian Prudential Regulation Authority will establish an independent panel to review the Commonwealth Bank of Australia’s governance, culture and accountability. CBA CEO Ian Narev has described the review, which follows a series of scandals at the nation’s largest bank, as a "positive and constructive step". However, ratings agencies S&P Global and Fitch have warned that CBA’s credit rating could be downgraded if the review results in any adverse findings. Shadow treasurer Chris Bowen maintains that a royal commission into the entire banking sector is needed.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, S&P GLOBAL RATINGS, FITCH RATINGS LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, STANDARD AND POOR’S ASX 200 INDEX, WILSON ASSET MANAGEMENT, FINANCE SECTOR UNION

Crackdown on telcos ‘terrible’ NBN ads

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Original article by Max Mason
The Australian Financial Review – Page: 6 : 22-Aug-17

The Australian Competition & Consumer Commission will introduce voluntary standards covering national broadband network advertising by ISPs. Announcing the creation of the standards on 21 August, ACCC chairman Rod Sims described the current standard of NBN advertising by ISPs as "terrible", with ISPs not making it clear in their marketing the internet access speed that customers can expect if they sign up to an NBN plan. ISPs have been given three months to be in compliance with the standards.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, NBN CO LIMITED

APRA refines ‘serviceability’ rules for loans

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Original article by Duncan Hughes
The Australian Financial Review – Page: 6 : 21-Aug-17

The Australian Prudential Regulation Authority has directed banks such as Westpac to be more rigorous when it comes to assessing the ability of borrowers to service their loans. Westpac will introduce new measures in this regard from 21 August, with further measures to be adopted in September. APRA’s move on loan serviceability is the latest in a number of measures by it and other regulators aimed at ensuring that borrowers are not taking on too debt and are in a position to repay loans.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTPAC BANKING CORPORATION – ASX WBC, BANK OF MELBOURNE LIMITED, ST GEORGE BANK LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AMP LIMITED – ASX AMP

BP issues price vow in bid to win Woolies deal

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Original article by Sue Mitchell
The Australian Financial Review – Page: 19 : 11-Aug-17

The Australian Competition & Consumer Commission is concerned that BP is not as competitive as Woolworths when it comes to fuel pricing. The ACCC is considering BP’s proposed $A1.8 billion purchase of Woolworth’s petrol stations, which was announced at the end of 2016. If the deal goes ahead, it would make BP the largest fuel retailer and wholesaler in Australia. BP Australia president Andy Holmes says it is keen to work with the ACCC to address any concerns it may have about the transaction.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BP AUSTRALIA LIMITED, WOOLWORTHS LIMITED – ASX WOW

CBA faces laundering rap

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Original article by James Frost
The Australian Financial Review – Page: 1 & 12 : 4-Aug-17

AUSTRAC has accused the Commonwealth Bank of Australia of not being in compliance with money-laundering regulations, and has launched legal action against it in the Federal Court. AUSTRAC contends that the CBA has not properly monitored or reported large cash transactions being made through its ATMs. AUSTRAC has stated that there have been 53,700 occasions since 2012 when the $A10,000 threshold above which transactions must be disclosed were exceeded, but they were either not reported to AUSTRAC or were not reported in time for it to take action. A maximum penalty of $A18 million applies to each incident of non-compliance with disclosure rules.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, BNP PARIBAS SA

NAB CFO hails APRA decision

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Original article by James Frost
The Australian Financial Review – Page: 16 : 24-Jul-17

The Australian Prudential Regulation Authority has set a new capital target for the banking sector, with the four main banks expected to have a common equity tier-one capital ratio of 10.5 per cent or more by 1 January 2020. Gary Lennon, the National Australia Bank’s chief financial officer, says it is well placed to reach the target, as it had a CETI ratio of 10.1 per cent at the end of March 2017. Lennon is supportive of APRA’s target, saying it will help to boost investor confidence in the banking sector.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Banks dodge a capital bullet

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Original article by Andrew White
The Australian – Page: 17 & 21 : 20-Jul-17

The Australian Prudential Regulation Authority will require the nation’s four major banks to have minimum common equity tier-one capital ratios of 10.5 per cent from 2020. The new capital requirements are part of APRA’s strategy for ensuring that local banks are "unquestionably strong". Investors responded positively to the revised capital rules, which were less stringent than had been anticipated, with shares in local banks rallying on 19 July. The capital ratios of most of the major banks are already close to APRA’s proposed new minimum.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, YARRA CAPITAL PARTNERS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, SHANGHAI RURAL COMMERCIAL BANK

GetUp! to pay for journalist’s tax expose

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Original article by Darren Davidson
The Australian – Page: 5 : 9-Jun-17

It has been revealed that activist group GetUp is helping to finance an investigation by journalist Michael West into alleged tax avoidance by large multinationals. GetUp’s deputy chair Carla McGrath was recently appointed to the Australia Press Council’s board, a decision that has caused some controversy and prompted News Corp’s newspapers to boycott any Council hearings in which she participates. Concerns have been raised that McGrath may be involved in hearing complaints against companies that West is investigating.

CORPORATES
GETUP LIMITED, AUSTRALIAN PRESS COUNCIL, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ESSENTIAL MEDIA COMMUNICATIONS PTY LTD, UNIVERSITY OF TECHNOLOGY, SYDNEY

Activist’s press role a bad call, says ALP

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Original article by Darren Davidson
The Australian – Page: 3 : 8-Jun-17

The Australian Press Council is facing growing scrutiny over the appointment of GetUp’s deputy chair Carla McGrath to its board. Shadow communications minister Michelle Rowland says confidence in the APC may be undermined by the appointment of a senior member of the political activist group, and she has stressed the need for the APC to ensure that it avoids any conflicts of interest. Opposition Leader Bill Shorten is a former director of Getup.

CORPORATES
AUSTRALIAN PRESS COUNCIL, GETUP LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS