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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.

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REDRUM: Lunatic RBA slays economy Macro Business12:20 am on February 6, 2019 David Llewellyn-Smith   Policy error is the name of the game at the Australian central bank. Witness: ·         house prices in Australia’s two largest cities are in outright crashes; ·         it is spreading steadily to other capitals; ·         building approvals are crashing coast to coast; ·         infrastructure investment has topped out; ·         credit is swiftly falling towards zero; ·         the NAB business survey has crashed signalling the same for investment ahead; ·         PMIs [Purchasing Managers’ Indexes, a type of business sentiment survey –RJB] are crashing, corroborating the NAB survey; ·         car sales are marching lower; ·         retail sales have stalled and posted an Xmas shocker; ·         leading employment indexes have rolled over sharply; ·         monthly core inflation is at 1.4 per cent and tumbling; ·         bank share prices are down 40 per cent as they deliver unprecedented mortgage rate...
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RBA governor Philip Lowe blames bank executives, not regulators for scandals Australian Financial Review Feb 6, 2019 3.50pm Aaron Patrick   Reserve Bank of Australia governor Philip Lowe called on banking executives to take responsibility for the scandals that triggered the royal commission, and cleared financial regulators of blame. The top policymaker stopped short of calling on National Australia Bank chairman Ken Henry and chief executive Andrew Thorburn to resign, although squarely placed the blame for industry misconduct on banking "managers". "There has to be accountability that that starts at the top," he told a National Press Club lunch in Sydney Wednesday. "Cultural change really starts at the top in organisations and the leaders of organisations really need to be focused on delivering the right culture and that's something at the Reserve Bank we talk a lot about as well. "Should the leaders take responsibility? Of course they should. What that...
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Macquarie desk on fire - but who's caught in transition? Australian Financial Review Feb 6, 2019 12.15am Sarah Thompson, Anthony Macdonald   It has been a busy few days for Macquarie's institutional equities desk. The broker is believed to have been in the market with one of the biggest transition portfolios seen in recent years, which rival brokers reckon is worth at least $2 billion. It is not known who Macquarie has been selling for, but it looks very much like a big fish needing to swap shares for cash in a hurry. The question is whether it's a fund that needs its money back to meet redemptions - and redemption notices are flying around like confetti after a tough December quarter - or a superannuation or sovereign wealth fund reducing its exposure to Australian equities. The transition portfolio has had large blocks streaming through the market in the past week....
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Banking royal commission: Taxpayer and customer costs sure to rise from all this box-ticking The Australian 12:00am February 6, 2019 Adam Creighton   If the big consulting firms were listed companies, their share prices would have surged yesterday too, the first trading day following the release of the recommendations of the Hayne royal commission. Compliance and bureaucracy were big winners along with the banks and wealth giants, thanks to a thicket of new reviews and compliance measures. “There are relatively few changes to the law; no meaningful structure changes to the industry; no radical changes to the regulatory model,” said analysts at Citi, reflecting a widespread view that Kenneth Hayne’s 76 recommendations amounted to a once-over lightly for the nation’s wealth giants. Macquarie analysts were right to highlight “increased compliance costs and costs of doing business” too, along with “near-term upside for banks and wealth managers” that included the biggest share...
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A quick $22 million profit for royal commission insider trading? The New Daily 10:16pm, Feb 5, 2019 Michael Pascoe   Last week Josh Frydenberg “guaranteed” the royal commission’s final report would not leak while the government sat on it for three days. About $22 million says that guarantee wasn’t worth anything. The welter of news in Kenneth Hayne’s report has tended to overshadow what appears to be some rather obvious insider trading. Someone, somewhere, somehow received a nod and wink on Monday morning that the banks would actually come out of the royal commission better than expected. “Front running” is the market euphemism for what happened next. “Any alternate explanation is fanciful,” a fund manager wrote to me. “With the banks down a quarter per cent, some trader looked out the window at 11am and noticed it was all sunny and cheerful and decided to buy a half billion dollars worth...
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Melbourne housing lot defaults at 25 per cent, says Satterley Australian Financial Review Feb 6, 2019 5.10pm Larry Schlesinger   One in four buyers of housing lots in Melbourne, the country's biggest residential land market, are defaulting on their purchases, says Financial Review Rich Lister Nigel Satterley. Mr Satterley, who runs the country's biggest private land developer, Satterley Property Group, had warned in December that around 5000 lots in new housing estates would either default or have to be on-sold quickly over the next 30 months due to Uber-driving speculators and foreign investors not being able to get finance. But, speaking with The Australian Financial Review this week, he said the situation was "much worse than I previously thought". "At a minimum, the fallover rate is 20-25 per cent in the Melbourne land market," Mr Satterley said including across Satterley's own housing estates. "This is up from 5 per cent in...
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Banking royal commission failed on essential financial advice reform Alan Kohler   Kenneth Hayne’s final report was a stiff and eloquent ticking off of the financial services industries. But it is also a failure.   Specifically, his decision to not call for the separation of product and advice is both inexplicable and egregious. Another significant failure is that he has nothing to say about percentage fees and the high cost of financial advice. In fact, he seems to applaud it. Overall, Hayne’s report was well summed up by UBS’s bank analyst Jonathan Mott: it “fell well short of market expectations”. And none of the 76 recommendations “by themselves will have a material financial impact on the banks”. You might expect an analyst to celebrate that, but far from it: “We are concerned that ensuring lasting cultural change over the years may be difficult, especially as management and Boards rotate,” Mott says. Quite. And the...
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ASIC orders Commonwealth Bank financial planning arm to halt service fees The Australian 9:21am February 4, 2019 Samantha Bailey, Joyce Moullakis   Commonwealth Bank’s financial planning business has been ordered to immediately cease charging service fees from its customers and not enter into any new ongoing service arrangements. The order by the financial services regulator comes after Commonwealth Financial Planning Limited failed to meet the requirements of an enforceable undertaking struck with ASIC in April 2018 in relation to fee-for-no-service conduct. The stinging rebuke by ASIC - on the day the Hayne royal commission’s final report becomes public - hits CBA on many fronts. The bank’s (CBA) Count Financial unit and other planning businesses will be spun off alongside its mortgage broking operations. That will be done via a demerger on the ASX, but investors will tread cautiously on the deal even after the inhouse planners were excluded from it. In...
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  • Louie2U
    Louie2U says #
    Interesting how the RC would not look "under the hood"about CBA's other behaviours. Too hard? Or, too much else to find that this
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The regulators failed bank customers but they are now being trusted to fix this mess Sydney Morning Herald 4 February 2019 11:45pm Adele Ferguson   After a year of shame and grovelling apologies, the day of reckoning finally arrived. For those Australians hoping for structural separation of the banks, an overhaul of the regulators or heads on sticks, royal commissioner Kenneth Hayne's verdict would have been disappointing. For those looking for massive structural change in the wake of the Banking Royal Commission, an overhaul of the regulators or a list of heads on sticks, Commissioner Hayne's verdict may have disappointed, says Adele Ferguson. There was little blood and gore. It was more like a soft landing. The royal commission spent a year listening to how many ways government regulators failed in their duty to regulate the financial services industry. Customers were ripped off but the regulators had little or no appetite...
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  • Louie2U
    Louie2U says #
    Whyever would we expect anything less?
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Banking royal commission: executives off the hook, say unions The Australian 12:00am February 5, 2019 Elias Visontay   Unions leaders have lashed out at the royal commission report, saying it lets bank executives off the hook. ACTU president Michele O’Neil said: “The report is wholly inadequate and fails to get to the core of the issues in the banking sector and the insatiable greed of the banks, and lets those responsible — the bank executives — off the hook.” In a video posted to Twitter, the ACTU said the report failed to deliver justice because it lacked “direct referral of any criminal prosecution or civil prosecutions”. The union also said the report was a failure for not recommending to “kick banks out of super”, and “does nothing to change the sales-driven culture in banks”. “If a working person stole from their employer, the police would be called and they’d lose their...
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James Kirby: Risk of bad behaviour by banks by no means eliminated after royal commission The Australian 6:52pm February 4, 2019 James Kirby   Has the Hayne report offered a future where the financial advice scandals of the recent past might not happen again? Answer: Probably. The report has zoned in hard on three areas — ‘fees for no service’, commissions — especially in the insurance sector and a ‘coherent’ system of discipline for financial advisers. If fully taken up by the government, Hayne’s recommendations should cut out the vast bulk of bad behaviour in these sectors. But in leaving the banks to continue in the business of ‘vertical integration’ — where they try to be ‘one-stop shops’ — the risk of bad behaviour has by no means been eliminated. Hayne has offered clean cut solutions to troubled dimensions of the system which have triggered the greatest anger such as charging...
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  • Louie2U
    Louie2U says #
    Trust a financial advisor ever again? Nope! Trust a bank ever again? Not a hope. They're all tarred with the same unethical financ
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Banking royal commission: hands-off Hayne relying on Treasury submission The Australian 12:00am February 5, 2019 Joyce Moullakis   For all the discussion about banks being reluctant to lend and the ­impact on the economy, Kenneth Hayne didn’t have a lot to say on the topic. In his final report, Hayne said banks were screening loan customers more heavily, which could result in a “tightening of credit”. He said that was a result of banks meeting their legal obligations. Hayne is relying on Treasury’s submission, which pointed to the housing market and economy being able to absorb stricter bank lending criteria. Banks will be ­relieved Hayne took a hands-off approach and that they escaped further rules or a clamp-down. That is especially important given the slowing of the $1.7 trillion mortgage market, with house ­prices coming off the boil across most capital cities. Hayne’s scrutiny of bank legal obligations has already prompted...
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  • Louie2U
    Louie2U says #
    Vote the Liberal's and the LNP all out at the next election. If nobody is prepared to look underneath & in every dark corner, nook
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APRA nobbled as ASIC takes charge The Australian 12:00am February 5, 2019 Richard Gluyas   The prudential watchdog APRA, which emerged from the financial crisis as a renowned financial regulator, has had its powers and influence nobbled in a comprehensive review of the “twin peaks” regulatory model by the financial services royal commission. While commissioner Kenneth Hayne recommended retention of twin peaks, the model will now be extended into superannuation, with the Australian Prudential Regulation Authority to relinquish responsibility for industry misconduct to a resurgent ASIC. The Australian Securities & Investments Commission will also jointly administer the Banking Executive Accountability Regime, which will be broadened to apply not just to banking but to all APRA-regulated entities. Mr Hayne, who pilloried both ASIC and APRA in his September interim report for their soft regulatory touch and reluctance to pursue court action, explained the new approach to super regulation by saying each agency...
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  • Louie2U
    Louie2U says #
    Good grief, nothing ever changes in this bloody world, does it? What was Greggy boys complaint again? He wanted more millions to w
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Banking royal commission: investors will break out the Moet over modest recommendations The Australian 12:00am February 5, 2019 Adam Creighton   Banks’ and fund managers’ share prices may well surge today, as the modesty of the final report dawns on investors and financial executives alike. Bottle shops in Sydney’s and Melbourne’s east would be well advised to stock up on Moet. The 76 recommendations — pricey, at more than $13 million a pop given the $1 billion-plus cost of the whole exercise — amount to little more than a vigorous spring clean of the financial sector. These are sensible but modest reforms, many of which had been in the pipeline for some time. While welcome, the changes fall short of what the public might have expected, given the volume and variety of the illegality and amorality unearthed last year, and the public attention it received. No criminal referrals were made. There...
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Banking royal commission's final report is a dud. No wonder stock futures rose. Australian Financial ReviewFeb 5, 2019 6:22 AM David Fickling David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies.   The fearsome beast that's menaced Australia's financial services industry for the past year turns out to have been a paper tiger. The final report of the country's Royal Commission into misconduct in the sector will be a relief for bank investors. Futures on the S&P/ASX 200 index - the only immediate way to take a wager on the news, given the report's release after equity markets closed - immediately jumped as much as 0.3 per cent. When you consider that the companies under scrutiny make up only around a quarter of the benchmark, that's significant. To be sure, there are significant reforms embedded in Commissioner Kenneth Hayne's 76 recommendations, which the government...
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Banking royal commission: Industry reacts to the final report Australian Financial Review Feb 4, 2019 7:27 PM John Kehoe, James Eyers   Bankers and big business leaders have acknowledged the need to improve conduct in the finance industry following the royal commission's final report, but mortgage brokers and the property sector warned cracking down on brokers could restrict credit flow. Banks were relieved commissioner Kenneth Hayne recommended not to extend the consumer responsible lending laws to small business, a measure bankers and the government feared could have worsened the credit squeeze. Commonwealth Bank of Australia, the country's largest home lender, said it noted the commission had found its conduct in relation to superannuation and other areas would "warrant further investigation by relevant regulators" and that CBA would co-operate. "The royal commission has been a thorough and valuable process for everyone – bank customers, financial services institutions, regulators and policymakers," CBA chief...
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Banking royal commission final report: Criminal referrals will shame finance sector Australian Financial Review Feb 3, 2019 — 11:45 PM The AFR View (editorial)   Kenneth Hayne has done a powerful job in sharply clarifying the legal duties that financial service providers owe their customers and that identified breaches of those duties – such as charging people for perhaps a billion dollars or so of services they never received amid their insurance, superannuation or financial advice – should be more vigorously penalised. "There is no doubt that money was taken from clients," concludes Commissioner Hayne. "Nor is there any basis for doubting that, when taken, the taker did not intend to return it to the client". There can be no argument with the basic proposition that the professional duty to customers should form the bedrock of the business of providing banking and financial services. Commissioner Hayne's recommended 24 referrals for prosecution...
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Business heavy-hitters warn against panic over Hayne Sydney Morning Herald 4 February 2019 12:01am Sarah Danckert, Clancy Yeates   EXCLUSIVE  Business leaders have warned it would be impossible to remove all risk from the banking sector and trying to do so would hurt the economy, as the Federal Government is set to release the findings and its response to the final report of the Hayne banking royal commission. Calling for calm ahead of Monday's release, former Reserve Bank Board members and financial regulators have also cautioned all sides of politics from turning the final report into a point scoring exercise and to be sensible in their response or risk the economic consequences. Amid concerns of a panicked response from government, former RBA board member and long-time Woolworths managing director Roger Corbett said clamping down on risk-taking by banks could have economic consequences. “Whilst I think there has been some inexcusable pieces...
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Banks brace for hammering over their ‘woeful’ behaviour The Australian 12:00am February 4, 2019 Michael Roddan, Richard Gluyas   EXCLUSIVE  Australia’s banks are bracing for the biggest overhaul of their operations in generations, with royal commissioner Kenneth Hayne’s report into financial industry misconduct expected today to ­propose civil and criminal prosecutions for rogue companies and executives and tougher watchdog oversight. Leading corporate titans have called for an overhaul of conflicted remuneration, clearer and more enforceable laws, and a commitment to take responsibility for misconduct. “Agencies like ASIC will have to enforce the law, and the industry will have to adapt to compliance on a genuine basis — not compliance for the sake of it,” AMP chairman David Murray told The Australian ahead of the royal commission report being released at 4.10pm. “If it’s a good report, it will be clear to everyone what they have to do.” Former Bendigo Bank chief...
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Top law firm questions Kenneth Hayne's ability to judge 'community standards' Australian Financial Review 03 Feb 2019 11:00 PM Michael Pelly   A leading law firm has questioned whether Commissioner Ken Hayne is qualified to fulfil a key part of his brief – assessing whether the conduct of the financial services sector has "fallen below community expectations". Allens has told its clients Hayne is "extremely well placed" to adjudicate on breaches of the law, but doubts his credentials when it comes assessing the required standard of behaviour. The latest edition of its newsletter Unravelled, sent out on Friday afternoon, also asks whether community standards or expectations are "an appropriate benchmark". The author, partner Michelle Levy, says it will "be a matter of speculation in most cases and irrelevant in others". Mr Hayne made pointed comments about the culture of the banks in his interim report, released in September. The former High...
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