Search Results for: fofa

ASIC Says Up To $178m In Fees For No Service May Be Refunded To Major Bank Customers

ASIC has released Report 499 Financial advice: Fees for no service (REP 499). They say to date, approximately $23.7 million of fee refunds and compensation has been paid, or agreed to be paid, to over 27,000 customers of ANZ, NAB, CBA, Westpac and AMP. But further reviews are being conducted and based on estimates, compensation … Continue reading “ASIC Says Up To $178m In Fees For No Service May Be Refunded To Major Bank Customers”

The End of the Commission Remuneration Model In Financial Services?

The wind of change seems to be blowing though the financial services sector as the focus on doing the right thing for customers increases. The industry’s dirty secret is that many in the sector are rewarded on a commission basis for selling products and services, irrespective of whether they are right for the customer concerned. … Continue reading “The End of the Commission Remuneration Model In Financial Services?”

A history of failed reform: why Australia needs a banking royal commission

From The Conversation. The move for an inquiry into how banks treat small business customers should not overshadow the ongoing call for a broader royal commission on banks. Several financial inquries (outlined below) have failed to tackle the growing concentration in the Australian finance sector, or the need to separate general banking from investment banking … Continue reading “A history of failed reform: why Australia needs a banking royal commission”

ABA Announces Independent Review of Product Sales Commissions and Product Based Payments

As part of the industry initiatives announced on 21 April 2016, the ABA’s member banks have requested that the Australian Bankers’ Association (ABA) commission an independent review of product sales commissions and product based payments. The ABA has appointed Mr Stephen Sedgwick an independent person with relevant qualifications and experience to conduct this review. A … Continue reading “ABA Announces Independent Review of Product Sales Commissions and Product Based Payments”

Morrison warns banks not to pass on new ‘user-pays’ impost to finance ASIC reform

From The Conversation. Treasurer Scott Morrison has warned Australian banks not to pass on to customers the $121 million user-pays charge imposed on them to finance a strengthened Australian Securities and Investments Commission (ASIC). The banks will pay for almost all the $127 million four-year package, which the government hopes will take the sting out … Continue reading “Morrison warns banks not to pass on new ‘user-pays’ impost to finance ASIC reform”

Life Insurance Remuneration Reform Regulations

The Government has released draft regulations that will support the Government’s life insurance reform package to better align the interests of financial firms with consumers. Remuneration relating to life insurance advice provided outside of superannuation was excluded from the ban on conflicted remuneration (remuneration likely to influence advice) introduced under the Future of Financial Advice … Continue reading “Life Insurance Remuneration Reform Regulations”

ASIC and FSI Outcomes

In a speech given by Greg Medcraft, Chairman, Australian Securities and Investments Commission at the 32nd annual conference of the Banking and Financial Services Law Association (Brisbane), he looked at the Financial System Inquiry from a regulator’s perspective. Specifically, he sees three FSI recommendations as complementary. Product intervention powers would complement and reinforce the good … Continue reading “ASIC and FSI Outcomes”

CBA Announce Results to 30 June 2015 With Profit up 5% and $5bn Share Rights Offer

CBA announced its results for the financial year ended 30 June 2015. The Group’s statutory NPAT was $9,063 million, which represents a 5 per cent increase on the prior year. Cash NPAT was $9,137 million, also up 5 per cent. The Group also announced the launch of a $5 billion pro rata renounceable entitlement offer … Continue reading “CBA Announce Results to 30 June 2015 With Profit up 5% and $5bn Share Rights Offer”

CBA 3Q Trading Update – Is Pressure Rising?

The CBA released their 3Q update today.  We see the same signs of margin pressure and likely slower growth ahead, as in the recent results from ANZ and Westpac. We think the sector will be under more pressure going forwards. Extra capital requirements will also bear down in coming months. Provisions, at the bottom of … Continue reading “CBA 3Q Trading Update – Is Pressure Rising?”

Time To Fix Financial Planning Properly

There will, no doubt, be more calls for a Royal Commission into the impact of poor advice provided by financial planners, following the reports of mis-advice at the NAB, which follows on from CBA, and a long list of other firms. It is clear that there has been significant poor advice provided by some, perhaps … Continue reading “Time To Fix Financial Planning Properly”