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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.


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BFCSA: ANZ pulls plug on key advice service as Hayne fallout continues

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ANZ pulls plug on key advice service as Hayne fallout continues

Sydney Morning Herald May 17, 2019 3.17pm

Clancy Yeates


ANZ Bank will stop offering its flagship financial advice service, as the industry grapples with the fallout from the fees-for-no-service scandal and the royal commission's scrutiny.

In the latest change by a major bank in the advice sector, ANZ on Friday said it would phase out its "prime access" offering, which involved various services including an annual financial review. Instead, the bank will charge for advice on a case-by-case basis, meaning that more complex advice will lead to higher fees.

Customers will also be given the choice of how frequently they want a review of their financial plan, rather than the current practice of annual reviews.

The overhaul was announced as it also emerged that ANZ would have to hold more capital for "operational risk" in its New Zealand business, after the nation's central bank censured the lender over a long-running error.

The higher capital charge sparked concerns about its wider approach to risk management, which helped to drive ANZ shares 3 per cent lower, to $25.85.

Financial advice has been a key problem for banks, and ANZ has previously admitted it had failed to provide annual reviews to more than 10,000 "prime access" customers between 2006 and 2013, which triggered millions of dollars in refunds.

Last year, as the royal commission delved into problems with advice, ANZ also scrapped sales incentives in its advice business, and vowed to speed up customer compensation payments.

ANZ's managing director of private banking and advice, Mike Norfolk, said its new approach to providing advice would give customers "complete control" over when and how they reviewed their financial plan.

“We know we need to think differently about how we do this, which is why we are taking a new approach to providing our customers ongoing advice and phasing out Prime Access as part of that,“ he said.

Meanwhile, the Reserve Bank of New Zealand on Friday slapped ANZ's NZ business with a 60 per cent increase in its minimum capital for operational risk, to $760 million, after the central bank revoked ANZ's accreditation to use its internal capital models for this type of risk.

Due to their more advanced risk management systems, the largest banks are allowed to model how much loss-absorbing capital they hold.

RBNZ deputy governor Geoff Bascand said maintaining this accreditation required ongoing high standards, with "stringent responsibilities" on bank managers and directors.

“ANZ’s directors have attested to compliance despite the approved model not being used since 2014. The fact that this issue was not identified for so long highlights a persistent weakness with ANZ’s assurance process,” Mr Bascand said.

ANZ said it took its responsibilities "very seriously" and it reported the matter to the RBNZ when it became aware of the error.

Bell Potter analyst TS Lim said the increased capital was "no big deal" for ANZ as a whole, but the lapse raised concerns over the potential for other problems.

"When you think about overall risk management, it's a worry," Mr Lim said.

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