INDEPENDENT REGULATORY COMMISSIONS – AUSTRALIA

Westpac hit with record fine on loans

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Original article by Clancy Yeates
The Age – Page: 25 : 5-Sep-18

Westpac has been hit with a fine of $35 million after having admitted to breaching consumer credit protection laws. The breaches occurred between 2011 and 2015, when Westpac used an automated system to approve 10,500 home loans. In settling its case with the Australian Securities & Investments Commission, which had been due to go before the Federal Court, Westpac agreed on 4 September that the loans should have been approved by a credit offer. ASIC had launched its case against Westpac over the loans in 2017.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Seven accuses media regulator of censorship

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Original article by Stephen Brook
The Australian – Page: Online : 5-Sep-18

The Seven Network has stated it plans to take the Australian Communications and Media Authority to court after ACMA ruled a segment on its ‘Sunrise’ program had breached broadcasting codes. The segment in question involved a discussion on child abuse and the adoption of indigenous children, with ACMA contending the segment provoked "serious contempt on the basis of race". Craig McPherson, Seven’s director of news and public affairs, contends that ACMA’s ruling amounts to "a form of censorship".

CORPORATES
SEVEN NETWORK LIMITED, AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY

Poor connection – ASIC to restrict life insurance telemarketers due to mass policy cancellation

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Original article by Ceyda Erem
mozo.com.au – Page: Online : 31-Aug-18

The Australian Securities & Investments Commission has found that up to one in five life insurance policies sold over the phone are cancelled during their cooling-off period. ASIC found that one of the main reasons for the high level of cancellation was the lack of information provided about important policy features. Meanwhile, research by Roy Morgan has found that 10.8 per cent of those holding risk and life insurance policies either switched their policies or actively thought about doing so in the year to June.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, ROY MORGAN LIMITED

APRA prepares to approve three new banks

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Original article by James Eyers
The Australian Financial Review – Page: 26 : 28-Aug-18

There is speculation that the Australian Prudential Regulation Authority could grant full banking licences to fintech start-ups Volt Bank, 86400 and Judo Capital by the end of 2018. They would be subject to the same capital requirements as other banks, while gaining the trust of consumers will be a challenge. However, they should benefit from a lack of legacy IT systems and branch networks, as well as negative sentiment toward traditional banks in the wake of the royal commission.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, VOLT BANK LIMITED, 86400 PTY LTD, JUDO CAPITAL PTY LTD, 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

CFMEU faces cartel criminal charges

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 3 : 17-Aug-18

The Australian Competition & Consumer Commission has launched legal action against the construction union, alleging that its Australian Capital Territory branch engaged in cartel activity. The Construction, Forestry, Maritime, Mining & Energy Union’s ACT secretary Jason O’Mara has also been charged with cartel offences. He could face up to 10 years’ jail if convicted, while the CFMMEU could be fined up to $10 million or 10 per cent of its turnover. The charges arise from a joint investigation by the ACCC and an Australian Federal Police taskforce in the wake of the trade union royal commission.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN FEDERAL POLICE, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIAN LABOR PARTY, FEDERAL COURT OF AUSTRALIA

APRA urges caution on super reforms

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Original article by Andrew White
The Australian – Page: 17 & 18 : 6-Aug-18

The Australian Prudential Regulation Authority’s deputy chair Helen Rowell says superannuation funds that are excluded from the proposed list of the 10 best-performing funds may face problems such as liquidity issues and doubts about their sustainability over the medium to long-term. She adds that the Productivity Commission’s proposed changes to the default super regime would increase APRA’s workload, as it would have to work more closely with registrable superannuation entities that do not make the "best in show" list.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. FAIR WORK COMMISSION

ACCC lashes Aurizon, Pacific National deal

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 15 & 25 : 20-Jul-18

The Australian Competition & Consumer Commission has launched legal action against Aurizon Holdings and Pacific National in the Federal Court. The ACCC is seeking to block the sale of Aurizon’s Queensland intermodal business and its Acacia Ridge terminal to Pacific National, its main business rival. The total cost of the two deals is $225 million, with Pacific National giving Aurizon a $35 million non-refundable deposit. ACCC chairman Rod Sims has compared the sale to Coles being sold to Woolworths.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AURIZON HOLDINGS LIMITED – ASX AZJ, PACIFIC NATIONAL PTY LTD, FEDERAL COURT OF AUSTRALIA, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS GROUP LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, QUBE HOLDINGS LIMITED – ASX QUB, QUEENSLAND. COMPETITION AUTHORITY, QUEENSLAND RESOURCES COUNCIL LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S (AUSTRALIA) PTY LTD

APRA’s stress test draws fire on detail

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Original article by Michael Roddan
The Australian – Page: 20 : 13-Jul-18

The Australian Prudential Regulation Authority has released the results of its latest stress test of the banking sector. Commenting on the results, APRA chairman Wayne Byres said banks need to get improved data on customers’ overall debt position, as well as coming up with better crisis plans. Digital Finance Analytics’ Martin North is critical of the lack of public detail in the stress test, while APRA has also been criticised by some economists for its very optimistic view of the state of Australia’s $1.7 trillion mortgage sector.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, DIGITAL FINANCE ANALYTICS, CLSA AUSTRALIA PTY LTD, LF ECONOMICS

ACCC’s electricity reform could crush smaller retailers

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Original article by Cole Latimer
The Age – Page: 18 : 13-Jul-18

The Australian Competition and Consumer Commission’s recommendations arising from its review into the retail electricity sector include the adoption of a "basic price offer" and changes to electricity discounting. Both recommendations are expected to impact most on smaller electricity retailers, and could force them to merge with larger rivals. Tony Wood of the Grattan Institute notes that the current level of competition has not necessarily benefited consumers, so they may not be worse off if there are fewer electricity retailers.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, GRATTAN INSTITUTE, AUSTRALIAN ENERGY REGULATOR, MACQUARIE WEALTH MANAGEMENT

Coal stays in energy fix

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Original article by Andrew Tillett, Mark Ludlow
The Australian Financial Review – Page: 1 & 4 : 12-Jul-18

The Australian Competition & Consumer Commission has made 56 recommendations in the final report of its investigation into retail energy pricing. Prime Minister Malcolm Turnbull has indicated that the Federal Government may support the ACCC’s recommendation that the cost of new dispatchable electricity generation be subsidised by taxpayers. This could potentially include coal-fired power stations. Other recommendations include replacing electricity retailer’s standing offers with default offers.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AGL ENERGY LIMITED – ASX AGL, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AUSTRALIAN ENERGY MARKET COMMISSION, AUSTRALIA. ENERGY SECURITY BOARD, QUEENSLAND MEDIA CLUB, LIBERAL PARTY OF AUSTRALIA, MINERALS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, VICTORIA. DEPT OF ENVIRONMENT, LAND, WATER AND PLANNING