Archived News for Finance Sector Professionals
Customer satisfaction with the country’s big four banks are declining according to a recent poll conducted by Roy Morgan Research.
Despite an overall decline, Westpac is the clear leader of the big four at 66.8 per cent, ahead of the NAB at 64.9 per cent, ANZ at 63.9 per cent and the Commonwealth Bank at 61.7 per cent.
Despite the drop in the latest month, the satisfaction level of bank business customers is still 3.6% points higher than at this time last year (61.5%), with all of the major banks exhibiting an increase over this period. NAB showed the largest improvement over the last 12 months at 6.3% points closely followed by Westpac at 6.2% points, whilst the leading major bank Suncorp has improved just 0.1% points compared to April 2011.
Non-major lenders build market share
Australian non-major lenders have significantly increased their share of the first home buyer and refinancing markets according to a recent report conducted by mortgage broker AFG.
Veda warns of debt spiral
Credit specialist Veda has found that around 750,000 Australians are at risk of falling into an uncontrollable debt spiral if the country experiences an economic downturn.
NSW signs MoU with Dubai for financial sector collaboration
The NSW Government has signed a Memorandum of Understanding with the Dubai International Finance Centre Authority Dubai to work closer together to grow their banking and financial services sectors.
AMP to acquire SA schools PPP
Since acquiring management of the AMP Capital Community Infrastructure Fund in September 2010, AMP Capital has acquired four additional social infrastructure assets bringing the total number of assets in the portfolio to eight.
Parliamentary Committee slams APRA and ASIC over Trio failure
The report of the Parliamentary inquiry into the collapse of Trio Capital, the largest superannuation fraud in Australian history, has found that key checks and balances in the Australian financial and superannuation system failed to identify the fraud.
ANZ announces China investment
The ANZ bank has announced plans to invest a further $300 million in its China operations to support further growth in the country.
CBA posts $1.75 billion in quarterly earnings
The Commonwealth Bank has posted $1.75 billion in earnings in the March 2012 quarter, up from $1.7 billion this time last year.
Heritage Bank launches ASX debt transaction
Heritage Bank has announced it will launch new ASX-listed debt securities, to be known as Heritage Bank Retail Bonds, to raise approximately $125 million.
ACCC completes mortgage membership arrangements review
The Australian Competition and Consumer Commission (ACCC) has completed a review of a number of notifications that require the mortgage brokers of four lending businesses to belong to the Mortgage Finance Association of Australia (MFAA).
ANZ drops variable rates
The ANZ bank has dropped its variable rates for mortgages and business lending by 0.37 per cent, dropping to 7.05 per cent.
Draft insolvency reform regulations released
The Federal Government has released draft regulations of the Government’s plans to reform and modernise the country’s insolvency framework.
Government rolls out carbon tax support
The Federal Government will start paying out its new Household Assistance Payments, paying a total of $35 million to over 1.6 million Australian families over the coming months.
Insolvencies remain high
Recent figures released by the Australian Securities and Investments Commission (ASIC) show that insolvencies are remaining at high levels.
Government announces Financial Reporting Council appointments
Federal Parliamentary Secretary to the Treasurer, Bernie Ripoll, has announced the appointment of Belinda Gibson and Ian Purchas as Members of the Financial Reporting Council (FRC).
Anger over super 'tinkering'
Changes to the Australian superannuation system has sparked anger from the financial services industry.
APRA releases MySuper discussion paper
The Australian Prudential Regulation Authority (APRA) has released a discussion paper on proposed arrangements for the authorisation of MySuper products.
Accompanying the discussion paper is a draft authorisation application form together with instructions, as well as draft Prudential Standard SPS 410 MySuper Transition (SPS 410) which sets out requirements for trustees moving member balances into a MySuper product.
On 3 November 2011, the Federal Government introduced the Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 into Parliament under which a registrable superannuation entity (RSE) licensee intending to offer a MySuper product must seek authorisation from APRA.
The MySuper authorisation package released today builds on APRA’s release on 27 April 2012 of draft prudential standards for superannuation. A number of elements in the draft authorisation application form request the submission of documents that will be required under the prudential standards.
APRA Deputy Chairman Ross Jones said the proposed authorisation requirements have been carefully aligned with the legislative requirements.
‘We encourage RSE licensees considering offering a MySuper product to use the draft application form and instructions in discussions with their Board on their plans, and to open discussions with APRA supervisors on the issue as soon as possible.’
The authorisation process for RSE licensees wishing to offer MySuper products will commence from 1 January 2013. Once authorised, RSE licensees can offer these products from 1 July 2013 onwards.
Draft SPS 410 outlines requirements for all RSE licensees during the transition period from 1 July 2013 to 1 July 2017, by which date all accrued default amounts must be in a MySuper product except in limited circumstances.
The consultation package can be found on the APRA website at: www.apra.gov.au/Super/Pages/Superannuation-reforms-2011-2013.aspx
Increased financial services licence fees to fund FOFA
The Federal Governmenthas announced in the Budget it will increase the application fee to obtain an Australian financial services (AFS) licence to cover the costs of implementing the Future of Financial Advice reforms.
New registration process for self-managed super auditors
The Australian Securities and Investments Commission (ASIC) has been allocated $10.7 million over four years to develop and maintain an on‑line registration system for auditors of self managed superannuation funds (SMSFs).
As part of the registration process, ASIC will develop a competency exam for SMSF auditors. ASIC will also be responsible for the deregistration of non‑compliant auditors. Auditors may begin to register with ASIC from 31 January 2013.
The Government will also provide $10.6 million over five years (including $1.5 million in capital funding in 2011‑12) to the Australian Taxation Office to police registered auditors, check their compliance with competency standards set by ASIC and refer auditors to ASIC, for enforcement action.
The cost of this measure will be offset by increases in the SMSF levy and fees charged by ASIC for sitting the competency exam.
Super levy to fund SuperStream IT systems
The Federal Budget has provided $467.1 million over seven years (including $41.2 million in 2016-17 and $40.9 million in 2017-18) to implement the SuperStream reforms that are part of the package of Stronger Super reforms.
ASIC funding boosted
The Australian Securities and Investments Commission (ASIC) has received new funding totalling $180.2 million over four years in the 2012-13 budget.