Friday, August 17, 2018

Royal Commission: APRA deputy chair Helen Rowell warns public enforcement action could destabilise funds

Australian Prudential Regulation Authority deputy chair Helen Rowell says the banking watchdog prefers to operate behind the scenes rather than seeking public enforcement action. 

Ms Rowell told the financial services Royal Commission that APRA was aware of risks that investors of any targetted fund might rush to liquidate their investment and destablise a fund. 

ABC's Peter Ryan says APRA confirmed it had not taken any enforcement action against a super fund since 2008.

Here's the coverage from The World Today on the ABC

Thursday, August 16, 2018

AMP Super chair Rick Allert in Royal Commission hot seat to explain myriad of fees in superannuation arm; Michael Hodge QC channels Ms Siri

AMP Super chairman Rick Allert has been pressured to explain the myriad of fees incurred in the administration of the wealth manager's superannuation arm. 

Counsel assisting the banking Royal Commission Michael Hodge is continuing his scrutiny of AMP given damaging revelations about fees charged without service earlier this year. 

ABC's Peter Ryan says this morning's hearing received an unexpected interruption when Michael Hodge's Apple watch hear from Ms Siri.

Here's my report from The World Today

Full banking licence to take on Big Four not on Australia Post agenda just yet says chief executive Christine Holgate

Australia Post chief executive Christine Holgate has doused speculation that she is considering a bid for a full banking licence to exploit revelations from the financial services Royal Commission. 

Ms Holgate told ABC's Peter Ryan there is no need to apply for a banking licence but says Australia Post would welcome a closer relationship with the major banks especially in rural and remote Australia. 

Ms Holgate confirmed that while traditional "snail mail" remains in decline, it is not about to disappear.

In a wide ranging interview, Christine Holgate responded to concerns about the gender pay gap given her lighter pay packet compared to predecessor Ahmed Fahour.

Here's the interview aired on this morning's AM program

Wednesday, August 15, 2018

Trailing commissions could be scrapped, Colonial First State executive Linda Elkins tells Royal Commission

Colonial First State executive Linda Elkins tells the financial services Royal Commission that the future of controversial trailing commissions is being reviewed. 

Ms Wilkins said Colonial could move unilaterally without approval of its parent company, Commonwealth Bank. 

ABC's Peter Ryan says trailing commissions have been a blemish on the industry.

Tuesday, August 14, 2018

Aust Banking Association boss Anna Bligh flags possible serious penalties at end of Royal Commission

Australian Banking Association chief executive Anna Bligh has flagged possible serious penalties as a result of the financial services Royal Commission.

The former Queensland labor premier said while banks are not about to be abolished, real change is needed given revelations about the behaviour of some banks. 

Here's my report from The World Today on the ABC.

Turkey currency crisis could spark run on banks, CMC chief market strategist Michael Hewson warns

The risk of a full blown economic crisis in Turkey is escalating after tough talk on tariffs from Donald Trump precipitated a meltdown in the nation's currency. 

CMC chief market analyst Michael Hewson tells ABC's Peter Ryan that concerns about interference in Turkey's economy could spark a run on foreign-owned banks. 

Turkey's currency has plunged 40 percent this year with falls precipitated by Donald Trump's move to ramp up tariffs on steel and aluminium.

Here's my report from this morning's AM program on the ABC

Monday, August 13, 2018

Bluescope Steel's $1.6b profit. But still not paying corporate tax, given "carry forward" losses from transformation.

Bluescope Steel chief executive Mark Vassella tells @eleanorhall1 that the company is still not in a position to pay corporate tax as it utilises "carried forward tax losses" in Australia and NZ. 

"We are certainly absorbing the accumulated tax losses that we have. The sooner we get back to paying tax the better outcome for Bluescope because it means we are generating profits," Mr Vassella told The World Today.

Royal Commission: NAB executive Andrew Hagger concedes publicity was a factor in "fee for no service" deal with ASIC; Q-Super executive says indigenous Australians get a raw deal on supernannuation

National Australia Bank senior executive Andrew Hagger has conceded that publicity was a factor when determining the reprimand to accept from corporate regulator ASIC over charging fees for no service. 

Earlier, Q-Super executive Lyn Melcer told the financial services Royal Commission that indigenous Australians received a poor deal on superannuation and stood to retire with a super balance 46 percent below what is required for a comfortable retirement. 

Here's my coverage from The World Today on the ABC.

Royal Commission: National Australia Bank top executive Andrew Hagger to be grilled on "fee for no service"

National Australia Bank senior executive Andrew Hagger has been summoned to the financial services Royal Commission to be grilled on suggestions that the bank breached the corporations act on 110 occasions by charging fees for no service. 

Royal Commissioner Kenneth Hayne said last week that the NAB might have been engaged in criminal activity in relation to the breaches. 

ABC's Peter Ryan is covering the Royal Commission and spoke to the AM program.