Digital Finance Analytics (DFA) Blog
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From The Adviser. Confidential internal documents from the Commonwealth Bank show that the bank sought to reduce the proportion of broker flows from around 45 per cent to “between 20 per cent and 30 per cent” in 2016. According to an internal Reputational Impact Brief that was raised internally in October 2016, the Commonwealth Bank … Continue reading “CBA sought to halve broker flows in 2016”
From The Adviser. Applying best interest obligations to brokers could help preserve the integrity of the third-party channel, according to ANZ CEO Shayne Elliott. In his opening address to the Productivity Commission (PC) on Tuesday, 6 March, Mr Elliott claimed that a “best interest duty” applied to the broking space could enhance consumer protection. “About … Continue reading “Best Interest and Brokers – It Could Be Positive – ANZ”
From Investor Daily. Last week, ASIC issued a report confirming in-house product bias within institutionally-aligned licensees between 2015 and 2017, finding that 68 per cent of all client funds across these businesses had been invested in products owned and operated by related entities. A review of sample files where advice to switch products to an in-house product … Continue reading “ANZ responds to fiduciary duty breach claims”
27 Dec 2014 – Australian Financial Review – Analysts warn savers may face further pressure in 2015 23 Dec 2014 – ABC Online – BIS outlines higher capital requirements for banks 08 Dec 2014 – ABC The Drum – Financial System Review 07 Dec 2014 – ABC Radio – Expectations of the Financial System Review … Continue reading “2014”
ASIC says the first civil penalty has been imposed on a financial services licensee for breaches of the best interests duty under the Future of Financial Advice (FOFA) reforms. The focus on the matter was on the “best interest” provisions and the remuneration model. This is a significant development. The Federal Court has imposed a … Continue reading “Financial advice firm to pay $1 million penalty for breach of best interests duty – ASIC”
From The Adviser. Research firm Rice Warner says broker remuneration should undergo FOFA-style reforms and argued for mortgages to be reclassified as financial products in the Corporations Act. In an article titled Governance of Mortgage Brokers, published this week, Rice Warner slammed aspects of the mortgage broking industry in light of ASIC’s remuneration review, released … Continue reading “Fresh calls to ‘outlaw’ broker commissions”
From The Conversation. The Australian Banking Association (ABA), backed by the banks’ financial and political clout, has not yet made its mark in the way the mining or gaming industries have. But this is threatening to change. The appointment of Anna Bligh to head up the ABA may represent an important turning point for the … Continue reading “Bligh’s banking appointment is a masterstroke”
From Australian Broker. There is a “significant risk” that the Australian Bankers’ Association (ABA) Retail Banking Remuneration Review will draw “false conclusions” on broker remuneration, according to the Australian Finance Group (AFG). Managing director of AFG, Brett McKeon, said the review does not have the information gathering powers or resources required to include broker remuneration … Continue reading “Aggregator slams ABA Review’s “ludicrous” broker findings”
NAB says its superannuation trustee, NULIS, has commissioned an independent Assurance Review into its superannuation business. ASIC also made a release. This follows an agreement with the corporate regulator, the Australian Securities and Investments Commission (ASIC), that the Review will be the subject of additional conditions on the Trustee’s licence. NAB has worked cooperatively with … Continue reading “NAB commissions independent Assurance Review of its superannuation business”
From The Conversation. In it’s latest report, the Australian Securities & Investments Commission (ASIC) found the big four banks sold products to some customers through their adviser network, with a fee for ongoing advice, but the advice was never given. None of this came to light until the banks were asked by ASIC to look … Continue reading “ASIC report highlights a deep culture problem in Australia’s banks”