BFCSA Blog

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form
APRA, ASIC set clock ticking on super trustee fee crackdown The Australian 12:00am April 11, 2019 Ben Butler   Regulators have given the custodians of Australia’s $2.7 trillion in retirement savings just 11 weeks to come clean on how they are short-changing savers by charging fees and providing nothing in return. In a letter sent to every superannuation trustee company in the country today, the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission said they had already “identified a range of industry practices in relation to trustee oversight, many of which fall below the standard we expect”, some of which were “the subject of enforcement investigations or actions”. “This raises concerns about some trustees’ risk governance, capabilities and culture, as well as their ability to appropriately manage conflicts of interest,” the regulators said in the letter, signed by APRA deputy chairman Helen Rowell and ASIC commissioner Danielle Press....
Last modified on
Hits: 146 0 Comments
Rate this blog entry:
0
Continue reading
APRA threatens alternative enforcement for Hayne referrals Australian Financial Review Apr 11, 2019 4.04pm Misa Han   The prudential regulator says it may have to pursue "other avenues" to take enforcement action against the entities singled out by the Hayne royal commission, because the usual sanctions such as civil and criminal penalties are not available. In a written statement to the Senate economics legislation committee on Thursday, APRA chairman Wayne Byres said implementing the Hayne royal commission recommendations and referrals was a "high priority" for the regulator. "We continue to gather evidence on each of the possible enforcement matters referred to APRA, and expect to be able to make an assessment on the merits of further action in the coming months," he said. "However, as I noted last time, none of the potential breaches of the law or prudential standards that have been referred to APRA carry civil or criminal penalty...
Last modified on
Hits: 166 0 Comments
Rate this blog entry:
0
Continue reading
IRISH EXAMINER - Ireland   Tuesday, April 09, 2019 - 12:07 PM https://www.irishexaminer.com/breakingnews/views/analysis/eddie-hobbs-are-we-seeing-early-signs-of-an-australian-debt-asteroid-strike-and-why-it-matters-916553.html Are we seeing early signs of an Australian DEBT asteroid strike and why it matters! By Eddie Hobbs A recent report by Denise Brailey, the President of Australian BFCSA (Banking & Finance Consumers Support Association), to a Royal Commission on banking provided a worrying picture of banking in Australia.   Her research and findings on the dark arts of some debt sales Down Under reverberated more widely for a reason; it can happen in parts of banking in a hot market. How widespread, however, is uncertain. Business development managers can train front line debt sellers to act as agents of the bank, tasked with selling as much debt as possible. Incentivised by sales targets and fast money to be made, signed forms can get filled in, unsighted back at the office with bogus data, serviceability engines that calculate capacity to...
Last modified on
Hits: 435 0 Comments
Rate this blog entry:
Continue reading
Criminal law review to target boards, executives Australian Financial Review Apr 10, 2019 12.15am Michael Pelly   The federal government has ordered a comprehensive review of white-collar crime laws, with the aim of making it easier to sheet home responsibility for misconduct to senior executives and directors. Attorney-General Christian Porter will announce on Wednesday that the Australian Law Reform Commission will be asked to consider ways to "strengthen" the regime. Mr Porter said a key task for the ALRC would be to consider whether the Commonwealth Criminal Code "needs to incorporate provisions enabling senior corporate officers to be held liable for misconduct by corporations". Former Federal Court judge Robert Bromwich will be appointed a part-time member of the ALRC for the project, which will also consider options for implementing recommendations of the banking royal commission and the ASIC Enforcement Review Taskforce. Mr Porter said the terms of reference would include "consideration...
Last modified on
Hits: 262 0 Comments
Rate this blog entry:
Continue reading
Advisers eye legal challenge to Hayne’s trailing commission ban The Australian 3:42pm April 9, 2019 James Kirby   The financial advice industry is planning a significant rearguard action against the Hayne royal commission with the launch of “fighting fund” to finance a High Court challenge against planned reforms. With an estimated cost of up $1.5 million, the Association of Independently-owned Financial Professionals (AIOFP) is asking its 5000 members and affiliated professionals to donate money which will specifically challenge the Hayne commission’s recommendation to scrap trailing commissions. The financial advisers “Regulatory Challenge Fund” has clearly been emboldened by the recent success of mortgage brokers who successfully convinced both sides of parliament that a Hayne plan to change the commission structure of mortgage broking was unrealistic. In financial advice, trailing commissions have been “grandfathered” under previous legislation, namely the Future of Financial Advice laws of 2014 (grandfathering allows previously existing arrangements an exemption...
Last modified on
Hits: 184 0 Comments
Rate this blog entry:
0
Continue reading
S&P concerned banks may lose support in a crisis Australian Financial Review Apr 9, 2019 3.03pm James Eyers   S&P Global Ratings says there's a one-in-three chance it will cut its assessment of government support of the major banks in a financial crisis, a move that would trigger a downgrade to their credit ratings and push up the cost of funding. But for now, the international ratings agency says it believes both major political parties will "continue to hold a pragmatic view" that a taxpayer-funded bailout of any major banks would be more likely to maintain financial system and economic stability than forcing losses onto bond holders. After the Australian Prudential Regulation Authority said in November the major banks would need to lift capital buffers by up to 5 percentage points, forcing them to raise $75 billion of additional capital, S&P said on Tuesday its "base case" remains that the Australian...
Last modified on
Hits: 200 0 Comments
Rate this blog entry:
0
Continue reading
NAB: Aussie house price crash worst since Great Depression MacroBusiness 1:00 pm on April 9, 2019 David Llewellyn-Smith I reckon we’re going to redo the 1890s in real terms in Sydney and Melbourne.    Blowout in time needed to sell property   Australian Financial Review Apr 9, 2019 9.00am Duncan Hughes  KEY STATISTICS ·         69 days Median time on the market in Sydney. ·         54 days Median time on the market in Melbourne. ·         Close to 80 days Median time on the market in Perth and Darwin. ·         $1500-$5000 How much it costs to get your property up to the top of online sales for your postcode. Property owners are taking four times as long to sell their Sydney dwellings than at the peak of the market, forcing many into expensive bridging finance and costly extended sales campaigns. For Melbourne it is twice as long and for other capitals, such as...
Last modified on
Hits: 243 0 Comments
Rate this blog entry:
0
Continue reading
Housing affordability could see exodus of essential workers in Sydney and Melbourne Nine.com.au9 April 2019 Tim Rose   Sydney and Melbourne could be faced with a shortage of essential workers because they are unable to afford to buy a home in the two cities, a new report has warned. PwC's Deposit Gap Dilemma report, commissioned by Teachers Mutual Bank and Genworth Mortgage Insurance Australia and based on a CoreData survey of more than 1000 people, found the two cities could see an exodus of "key workers" without government intervention. The report defined key workers as teachers, nurses, ambulance officers, paramedics, fire and emergency service staff. An alarming 79 per cent of workers surveyed in those professions in Sydney and Melbourne believed home ownership was not achievable, with around a quarter looking to either relocate or even change careers. And not without reason. According to the report, they would need to save...
Last modified on
Hits: 194 0 Comments
Rate this blog entry:
0
Continue reading
AMP’s David Murray facing backlash The Australian 1:00am April 9, 2019 Joyce Moullakis   Under-fire wealth group AMP and chairman David Murray are going on the offensive before next month’s annual general meeting, as several investors flag plans to vote against him. The Australian understands Mr Murray will this week ramp up meetings with institutional investors and other key stakeholders to reiterate the board’s view the company can be revived under a new model and leadership. The Australian Council of Superannuation Investors (ACSI) is understood to be hosting a detailed conference call with Mr Murray on Tuesday, allowing its members to ask questions, while the Australian Shareholders’ Association (ASA) has a meeting with him late this week. AMP and Mr Murray will also make their case to influential proxy advisers as they seek to avoid a second strike against the group’s remuneration report. Last year, investors hit AMP with a 61...
Last modified on
Hits: 226 0 Comments
Rate this blog entry:
0
Continue reading
Boards urged to create 'social risk officers' in banks Australian Financial Review Apr 9, 2019 12.05am James Eyers   Banks boards have been urged to appoint "social risk officers" as senior executives to help directors deal with exposure to a growing list of non-financial risks that have emerged as they struggle to manage relationships with customers, regulators and employees. A report by the Actuaries Institute, to be released on Tuesday, could help boards and management teams quantify and respond to “non-financial risks”, after the Hayne royal commission called for financial institutions to assess culture regularly, deal with problems, and determine whether changes were effective. Ian Laughlin, a former deputy chairman of the Australian Prudential Regulation Authority, co-wrote the discussion paper, which suggests compiling a "social condition report" will help boards measure and control “relationships and associated risks”. “This can generate rich information that does not exist at the moment, which you...
Last modified on
Hits: 142 0 Comments
Rate this blog entry:
0
Continue reading
Stretched Australians unable to reduce debt Australian Financial Review Apr 8, 2019 6.00pm Matthew Cranston   Less than a third of Australians expect to reduce their debt load this year – down from 60 per cent last year – and not because they don't want to but because they can't, a survey by EY shows. Australia's household debt-to-income ratio is 190 per cent, and the Reserve Bank of Australia says it remains one of the biggest vulnerabilities in the economy. The heightened level of debt is unlikely to change even with interest rates expected to fall over the coming year, and the introduction of income tax cuts helping some to reduce debt rather than increase spending. When survey respondents were asked whether they expected to reduce, increase or keep personal and household debt at the same level, 28 per cent said they would reduce their debt level, down from 60 per...
Last modified on
Hits: 137 0 Comments
Rate this blog entry:
0
Continue reading
Albanese vows clean out of Infrastructure fat cats The Australian 1:00am April 8, 2019 Richard Ferguson   Top infrastructure advisers face the sack if Labor wins the next election, with opposition frontbencher Anthony Albanese promising a “renewal” of the ­Infrastructure Australia board. Infrastructure spending received a $100 billion boost in last week’s budget, but Mr Albanese said yesterday the board’s ­oversight of projects was too political. “Well what we need to have is a renewal of the Infrastructure Australia board and we will be asking for that,” he told Sky News. “And we will be consulting the opposition on who should be ­appointed to the board. It is quite extraordinary that this week a new appointment was made to the Infrastructure Australia board who immediately on day one — on day one — attacked the Labor Party. “I have been consulting with the sector, with organisations like Infrastructure Partnerships Australia, with...
Last modified on
Hits: 171 0 Comments
Rate this blog entry:
Continue reading
Labor using estimates to turn up the head on Coalition The Australian 1:00am April 8, 2019 Richard Ferguson   Labor plans to use a week of Senate estimates hearings to hold the government’s feet to the fire over taxpayer-funded advertising before the election is called. The Australian understands the government’s post-budget ads rollout will be probed by opposition senators in Canberra, and they plan to continue attacking the government over issues like energy supplements, environment grants and Joe Hockey. Labor Senate leader Penny Wong noted last week’s estimates led to the disclosure that Newstart recipients were added to a series of one-off energy payments while the Treasurer’s budget speech was still being delivered on Tuesday. “Senate estimates has uncovered the utter chaos that characterises the government’s 2019 budget,” she said. “Even before the ink on the budget papers was dry, they were being rewritten, with a backflip that blew an $80...
Last modified on
Hits: 114 0 Comments
Rate this blog entry:
0
Continue reading
Insurers told to 'step up' and take code of practice 'seriously' Sydney Morning Herald April 8, 2019 5.50am Clancy Yeates   Insurance companies have been given a rebuke by the body that supervises the industry's code of conduct, after a review found "questionable' and "inconsistent" reporting of breaches. In the wake of the royal commission into misconduct in financial services, there is pressure for major changes in how the sector's various codes of conduct are enforced, after commissioner Kenneth Hayne called for tougher powers for companies that fail to live up to the promises in such voluntary codes. In general insurance, the commission sparked a review of how well insurers have been monitoring their compliance with the industry's code of practice, which sets standards including being "open, fair and honest" with customers. The review, by the General Insurance Code Governance Committee, will be published on Monday alongside annual insurance statistics. It...
Last modified on
Hits: 117 0 Comments
Rate this blog entry:
0
Continue reading
Chinese investment in Australia drops to a decade low Australian Financial Review Apr 8, 2019 12.05am Michael Smith   Shanghai | Australia experienced its sharpest drop in Chinese investment for more than a decade last year due to Beijing’s clampdown on capital outflows and the demise of big mining and commercial property deals, a report released on Monday shows. Chinese investment fell 36.3 per cent, or $8.2 billion, in 2018, confirming Australia has caught up with the United States, Canada and the United Kingdom as a less favourable destination for Chinese capital. China’s state-owned companies are instead diverting capital into Belt and Road infrastructure projects in Asia and central Europe under the government's instructions, while private firms are increasingly focused on smaller deals in healthcare. Chinese investors also remain pessimistic about the investment environment in Australia, where they said it was becoming harder to raise capital, particularly in the property sector....
Last modified on
Hits: 129 0 Comments
Rate this blog entry:
0
Continue reading
'Under stress': One in five auctions pulled Australian Financial Review Apr 7, 2019 1.50pm Ingrid Fuary-Wagner   Sydney homeowners are increasingly pulling their homes from auction before the big day while some Melbourne properties are now selling for less than their council valuations. Melbourne recorded a preliminary clearance rate of 56 per cent over the weekend from 775 scheduled auctions compared to a slightly higher success rate in Sydney of 58 per cent, albeit it from a smaller pool of 621 scheduled auctions, according to Domain Group data: But with more auction results going unreported in an unfavourable market, the final clearance rate is expected to fall to about 49 per cent in Sydney and about 52 per cent in Melbourne, according to AMP Capital's chief economist Shane Oliver. Sydney auctioneer Damien Cooley said there was "no question" prices were still down. "The good quality properties are still selling well but not...
Last modified on
Hits: 114 0 Comments
Rate this blog entry:
0
Continue reading
'Delicate': IMF warns on property slide Australian Financial Review Apr 7, 2019 — 11.44pm Jacob Greber   Washington | Australia's housing market contraction is worse than first thought, says a top IMF analyst, leaving the economy in what he called a "delicate situation" that boosts the need for faster infrastructure spending and even potential interest rate cuts. In an exclusive interview, the International Monetary Fund's lead economist for Australia, Thomas Helbling, endorsed last week's federal budget forecasts for recognising the "weaker outlook" and its use of sober commodity price forecasts. However, Dr Helbling warned the negative fallout from what the IMF will this week admit is a greater-than-anticipated property market downturn in Australia requires more effort by governments to deliver new sources of growth to make up for a worsening shortfall. Dr Helbling implied the pace of infrastructure spending – as measured in the national accounts – has fallen short of...
Last modified on
Hits: 119 0 Comments
Rate this blog entry:
0
Continue reading
Off-the-plan apartments bomb for investors Australian Financial Review Apr 4, 2019 4.23pm Duncan Hughes   Two out of three Melbourne apartments sold off the plan during the past eight years have made no price gains, or have lost money upon resale, despite a property boom and record immigration, according to analysis by BIS Oxford Economics. In Brisbane about half are selling at a loss, or no profit, over the same period, while for Sydney it is about one in four since 2015, the analysis reveals. Numbers of properties losing money are rising as the slump in prices, a slowdown in overseas buyers and fears grow about the dangers of living in high rise because of negligent construction, particularly the use of inflammable cladding. Nervous lenders are also demanding a bigger deposit from buyers, which means buyers routinely having to pay more before the purchase can be completed. Property investors and BIS...
Last modified on
Hits: 121 0 Comments
Rate this blog entry:
0
Continue reading
'There's no one to deal with': Why ANZ is yet to sell to IOOF Australian Financial Review Apr 6, 2019 12.00am James Frost   ANZ is no closer to approving the deal to sell its wealth management business to IOOF after the departure of managing director Chris Kelaher, with the bank expressing concerns the company remains on autopilot after the regulator sidelined five key decisionmakers late last year. ANZ’s deputy chief executive and former wealth management boss Alexis George told AFR Weekend there were still some roadblocks in the way of the deal, including the fact IOOF did not have a fully functioning executive suite. “It’s good that we now have a permanent chairman [to deal with] but we just need to understand how we can deal with the capacity issue at the senior level,” Ms George said. “You have to remember there is no CEO or CFO or a head...
Last modified on
Hits: 117 0 Comments
Rate this blog entry:
0
Continue reading
Home Affairs accused of misleading senators on Paladin contract Australian Financial Review Apr 4, 2019 4.25pm Angus Grigg, Lisa Murray, Jonathan Shapiro   The Home Affairs Department has been accused of misleading a Senate committee over its failure to disclose that Craig Thrupp, the managing director of security firm Paladin, was removed from a $423 million refugee service contract on Manus Island. During an often heated morning of estimates hearings in Canberra on Thursday, Home Affairs Secretary Mike Pezzullo and his staff came under repeated attack from Labor and crossbenchers over their handling of the lucrative refugee contracts. Labor's Kim Carr asked why the department didn't think it relevant to disclose the removal of Mr Thrupp, when being questioned about Paladin's performance during estimates hearings in February. At the time, when questioned if the department had any concerns about Paladin's performance, the committee was told "none whatsoever". Just a day later...
Last modified on
Hits: 162 0 Comments
Rate this blog entry:
0
Continue reading