BFCSA Blog

ASIC FAILS TO MENTION LENDERS are the APPROVAL MASTERS of Mortgage Lending MENACE.   Online brokers lure investors, flout rules: Says dumb ASIC Sydney Morning Herald June 20, 2016 - 6:54PM Georgia Wilkins   Australian consumers are being lured into high-risk financial products by online brokers that are flouting the country's financial licensing rules.  A report by the Australian Securities and Investments Commission revealed "serious and widespread" compliance failures in the over-the-counter derivatives industry, including foreign exchange trading.  More than 70 per cent of the 55 companies probed by ASIC – all holding Australian financial services licences – were found to be in breach of licensing requirements.  The breaches included misleading consumers, mishandling client money and obscuring changes in ownership – sometimes through the use of "managers for hire". "This report highlights some serious compliance failures in this industry," ASIC Commissioner Cathie Armour said.  "Many of these investment products may not...

Government banking package fails on corporate policing     The government's attempt to head off a royal commission into the banks fails to address the systemic problems of financial regulation in Australia -- a timid regulator and no protection for whistleblowers. The government’s political package to solve the problem posed by Labor’s call for a banking royal commission will leave the systemic problems of lack of financial sector oversight unaddressed. This morning Treasurer Scott Morrison and Assistant Treasurer Kelly O’Dwyer announced a hastily contrived set of changes to beef up the corporate regulator, the Australian Securities and Investments Commission. The $120 million funding cut from ASIC’s budget will be restored via a levy on the banks, but only half of it ($57 million) will flow into additional operational funding, with the other half to go into capital spending for “enhanced data analytics”, meaning only around half of the several hundred staff cut...

Federal budget 2016: Scott Morrison to give extra $120m to corporate regulator ASIC DateApril 19, 2016 - 8:47PM 362 reading now Read later James Massola Treasurer Scott Morrison will announce at least $120 million in additional funding for corporate regulator ASIC as part of a suite of measures to be unveiled on Wednesday, after he and Prime Minister Malcolm Turnbull were challenged by the Coalition backbench on the need to crack down on bank behaviour. The announcement will come a day after Mr Turnbull confirmed Australians will go to the polls in a double dissolution election to be held on July 2 and is designed to blunt the political impact of Labor's push for a banks royal commission. The federal government's formal response to a capability review of ASIC, which was considered by the cabinet on Monday night, will more than restore the $120 million, four-year funding cut from the regulator in...

Backtracking........looks like ASIC have been prevented from what they need to do their job properly........why?   ASIC's miserable excuses are woeful.  They area direct cause of the banker scandals wandering on for 15 years!!!  Notice Medcraft today as always forgets to mention the word Low Doc.     ASIC bleats it wants money - to do what exactly?  Same ole nothing!   ASIC had powers to deal with Bank funded Spruikers in 2003.  They wait until all these spruikers are moved by Banks offshore?  Are you kidding me?   ASIC warns it cannot do its job without access to metadata   December 3 2014 http://www.smh.com.au/business/asic-warns-it-cannot-do-its-job-without-access-to-metadata-20141203-11z7ty.html  The head of the Australian Securities and Investments Commission has warned that the corporate regulator will not be able to do its job properly if it does not have access to critical metadata that other enforcement agencies such as the federal police and ASIO have access to....

LMI investor site – still going on and ASIC could have stopped in 2002....     The Culpability Debate   https://sites.google.com/site/lminvestorvictimcentre/comment-debate/the-debate   Latest ASIC 'Civil Action Against LM and Former Directors' media release: On 2 February 2016, His Honour Edelman J set the matter down for trial for four weeks from 29 August 2016 to 23 September 2016, and scheduled the next directions hearing for 26 February 2016.     The LMIM business model deployed 'independent' financial advisors to attract investors to the funds it offered. In the case of the MPF, created to attract investors from across the globe, interaction with an advisor or intermediary was the only way to invest in the fund. Non Australian investors paid a with-holding tax on investment returns to the Australian authorities as, one would sincerely hope, a contribution to the cost of a licensing and regulatory system that ensures investors monies are invested...

ASIC to nail second big bank on misconduct 5 April 2016  http://www.afr.com/street-talk/asic-to-nail-second-big-bank-on-misconduct-20160403-gnxhry  The corporate regulator is set to ramp up its attack on potential bank-bill rate riggers and trader misconduct, launching action against a second major Australian bank as early as Tuesday. Sources told Street Talk the action related to senior staff within another treasury division of a big four bank and the market chat functions used between them. The Australian Securities and Investments Commission has delved into the communications of all the large banks and in this latest instance is said to have uncovered the use of aggressive and inappropriate language. An ASIC spokesman declined to comment on specific cases saying only that the regulator was "looking at all the banks." This follows the regulator kicking off court proceedings against ANZ Banking Group in March alleging traders manipulated the bank-bill-swap rate. The ASIC documents were quite damning for ANZ in...

ASIC shifting the blame again...read the comments   Brokers responsible for more than half of interest-only lending, ASIC reveals   18 December 2015   http://www.brokernews.com.au/news/breaking-news/brokers-responsible-for-more-than-half-of-interestonly-lending-asic-reveals-210100.aspx   More than half of interest-only loans come through the third party channel, corporate regulator ASIC has revealed ahead of its forthcoming review of mortgage brokers in regards to interest-only lending.Speaking at the FBAA conference held on the Gold Coast in November, ASIC senior executive leader – deposit takers, credit & insurers, Michael Saadat announced that the regulator would turn its focus to mortgage brokers following its recent review of banks in regards to interest-only lending.Saadat has now revealed to Australian Broker that the shift in focus has come after its review of lenders found that interest-only loans through the broker channel increased by 8% over two years. “Since 2012, the proportion of interest-only loans sold through the broker channel has gone up from 49% to 57% as of the fourth...

ASIC still don’t “get it” as to who manufactures defective financial products...   ASIC turns its attention to mortgage brokers   19 November 2015 hthttp://www.smartline.com.au/2015/11/asic-turns-its-attention-to-mortgage-brokers/   Following up on its recent review of interest-only home loans provided by major lenders, the Australian Securities and Investments Commission (ASIC) is now moving to look into the same products provided by mortgage brokers. Michael Saadat, ASIC senior executive leader, noted that consumers were calling out for the new review after the release of the findings from the major lenders inquiry in August 2015. “Ever since publishing our report on interest-only loans and getting the lenders to agree to make the necessary changes, I keep getting asked by lenders what is ASIC doing to make sure brokers will also make changes to their processes,” Mr Saadat said, at the FBAA conference, as reported by Australian Broker Online on November 16. The recent reviews come as...

Hiding behind the law.......   Implications for ASIC after Daniels by Tim Bednall 7 November 2002 Ruling http://www.findlaw.com.au/articles/1304/implications-for-asic-after-daniels.aspx   Since the High Court decision in Yuill in 1991, ASIC has required parties that are the subject of its investigations to provide privileged information.  However, the recent High Court decision in Daniels held that the Australian Competition and Consumer Commission (ACCC) cannot compel the production of confidential lawyer-client communications when exercising its investigative powers under the Trade Practices Act 1974 (Cth).  This judgment is likely to have significant implications for ASIC investigations. The ASIC ActUnder the Australian Securities and Investments Commission Act 2001 (Cth), ASIC is given three broad investigative powers, namely:the power to conduct an examination of a person if ASIC has reasonable grounds to believe the person can give information relevant to a matter that ASIC is investigating (Part 3, Division 2); the power to give a direction requiring the production...

ASIC should fight online fraud faster – report By Jane Lee Sept. 9, 2015   http://www.illawarramercury.com.au/story/3339156/asic-should-fight-online-fraud-faster-report/   Corporate watchdog the Australian Securities and Investments Commission must respond to online financial crimes far more quickly, with questions raised about its ability to detect them, a parliamentary inquiry says.  Australians – especially Indigenous communities – were increasingly at risk of financial crimes ranging from money laundering and identity fraud in the digital age, a joint parliamentary committee on law enforcement has said.  Corporate and financial regulators needed to improve their ability to target and combat such crimes as a result, their report, published on Tuesday, said. The committee took a swipe at ASIC, saying it needed to deal more quickly with fast-moving internet financial scams in real time. It described ASIC's response to a scam against an unnamed credit provider, as "very tardy".  The National Financial Services Federation told the committee it took ASIC 223 days to...

ASIC not up to product intervention – lawyer   31 July 2015 Mike Taylor   http://www.moneymanagement.com.au/news/financial-planning/asic-not-product-intervention-lawyer   The Australian Securities and Investments Commission (ASIC) does not have the culture or the expertise to administer product intervention powers, according to specialist financial services lawyer, Peter Bobbin. Bobbin told a panel session at the Money Management Platforms & Wraps Conference at Magenta Shores, that he believed the handing of product intervention powers to ASIC would prove problematic as it was currently structured and orientated. In doing so, Bobbin said that the consequences for ASIC were already manifesting themselves in threatened legal action against the regulator over a failed action against a company. However, ASIC commissioner, Greg Tanzer, said he believed the regulator would treat such an intervention power carefully and that it's ability to recognise product problems should not be underestimated. "We have actually shown that we are pretty good at picking losers," he said...

CBA profits from Malta tax haven ·      by: Richard Gluyas, Banking ·      From: The Australian ·      November 16, 2009 http://www.theaustralian.com.au/business/cba-profits-from-malta-tax-haven/story-e6frg8zx-1225797981283   COMMONWEALTH Bank is reaping the rewards of its "post-box" banking operation in low-tax Malta, booking a $55 million benefit last financial year from lower offshore tax rates. The benefit was almost double its nearest big four rival, suggesting that the structure set up by CBA in the Mediterranean island nation is generating tens of millions of dollars in tax benefits. Malta is no longer regarded by the Australian Taxation Office as a tax haven, but was blacklisted as such earlier this year in proposed US legislation that was co-sponsored by Barack Obama when he was a senator. The CBA holding company Newport, which has a $5 billion balance sheet, is domiciled in Malta.  Newport, in turn, owns CommBank Europe, which has held a Maltese banking licence since 2005, employing a...

Only 89 cases of white collar crime in Australia?  What about the 18% of fraudulent loan applications penned by bank officers and no brokers involved?  The fraud is occurring after the applications are sent in to the 17 Major Lenders who are the worst offenders.  We have reported over 2000 of these to ASIC. The public are tired of ASIC suggesting it gets "tough." Time is long overdue to investigate Lenders and their asset stripping strategies.  This is why there are over 14 Inquiries to date on Loan app fraud.  ASIC employs over 300 investigators to take action in 89 cases?  Time for a Royal Commission into the entire banking sector if we are really serious about protecting consumers.  These sub prime loans will impact the economy. Bank on it. ASIC flexes muscles against fraud in financial services (its  A SIC JOKE!) Australian Broker News by Julia Corderoy | 02 Feb 2015   The...

Peter Kell, Deputy Chair of ASIC,  Dear Pete, you cannot continue the 16 year old crappy suggestion you are doing a CRACK DOWN on crooks.  You can no longer look at an advertisement and hand out a parking ticket to a Major Bank. Oxford Dictionary: CRACKDOWN A series of severe measures to restrict undesirable or illegal people or behaviour: a crackdown on white collar crime.    Pete a CRACKDOWN it does not suggest a parking fine for an ad!!!!  But we should have a CRACKDOWN on dud regulators!!! A CRACKDOWN IS WHERE YOU LOOK AT CONSUMER LOSSES AND RUINED LIVES, instruct the AFP, ROUND UP THE BANKERS, THROW THEM OVER THE BONNET OF THEIR FANCY CARS, HANDCUFF THEM AND HEAD OVER TO THE CDDP.    I explained this to you in our 2004 meeting in the Melbourne ZOO, remember?  Let's get a move on!  Its not about saying "oops adv is a tincy wincy bit misleading.  Its looking...

http://www.crikey.com.au/2001/05/20/if-hih-gets-a-royal-commission-what-about-this-4-billion-loss/ If HIH gets a Royal Commission what about this $4 billion loss May 20, 2001 12:00AM Mortgage broker campaigner Denise Brailey is a true Crikey hero and in her latest excellent column she is calling for a probe into the losses of up to $4 billion in a variety of dodgy mortgage schemes.  Scathing criticism as to why no prosecutions took place abound on each page - we have a full set of docs on this one! Considering ASIC was bestowed with more powers than Mario in 1998, why has the regulatory one, failed to revoke exemptions for solicitors, who were running amok with elderly investors hard earned pennies? The Real Estate Consumer Association (“RECA”) - runs on a considerably less budget than ASIC - yet has managed to uncover $1.7 Billion of defaulting loans across Australia and at least $800 Million missing in action. In reality, the figure of...

BIG POINT HERE IS:  There are 100 plus, on our list of villains........................why hasn't ASIC closed them down? Behind all these spruikers there are Bankers as when the time is right to hit these poorest of people will be fed like christians to the lions - to the lenders with the worst track record for future loans!!!!   Behind every misleading Spruiker there is a hidden evil Banker. Why hasn't Parliament outlawed PROPERTY SPRUIKERS when we complained back in 2001 to the Howard Government and in particular the then Finance Minister Joe Hockey?  Property Spruikers prey on the most vulnerable.  Rent to Buy is nothing new - old scams leading more vulnerable people into the waiting arms of bankers and high cost risky Liar Loans.  Nothing changes.  Banks need more cannon fodder to assist their developer clients of the bankers with distressed properties.  We know how the game is played and so does...

Clients of collapsed broker group $11.5 million out of pocket Friday, 15 August 2014   |   James Mitchell 0 Comments     Facebook   0       Twitter   1       Google +   0             Linkedin   1 1inShare Creditors of an insolvent mortgage and financial services group are facing a multimillion-dollar haircut, as the liquidator investigates whether the director should be charged. At least four related entities of Charterhill Group entered insolvency in January. The Adelaide-based group offered a range of services including mortgage broking, real estate marketing, property management, contract negotiation and SMSF advice. Three of the Charterhill companies owe creditors a combined $11.5 million but have only collected $25,000 in payments, according to their six-month presentation of accounts. Lending Solutions International is now under the control of the liquidator, Andrew Heard of Heard Phillips. It owes $10.2 million and has received $31 in payments....

http://www.smh.com.au/business/macquarie-ordered-to-contact-160000-customers-over-possible-financial-advice-compensation-20140815-104my9.html  Financial Planning Shock - Less training than a hairdresser    Adele Ferguson, Ben Butler, Georgia Wilkins   16 August 2014 "If a person came into the salon and were given a hairdresser who only had eight days training at TAFE, I don't think they would be comfortable with that person doing their hair.": Emily Andrade, Esteem Hair and Beauty. Photo: Janie Barrett Cheating rife in financial planning Adele Ferguson: Macquarie's bombshell a call to arms Macquarie to compensate big investors More than half a million Australians may have received shoddy advice about what to do with their retirement nest eggs from financial planners, many of whom do less training than a hairdresser, it has emerged.  The crisis gripping Australia's financial advice sector deepened dramatically on Friday when the corporate regulator ordered one of the country's top financial institutions, Macquarie Group, to alert every customer it has ever provided with financial...

http://www.afr.com/p/blogs/christopher_joye/comment_cormann_fofa_changes_gift_xrftj36KtmoyEsHZjRtOrN Comment: Cormann’s FOFA changes a gift to big banks PUBLISHED: 20 Jun 2014 13:06:00 | UPDATED: 22 Jun 2014 10:23:52PRINT EDITION: Christopher Joye The Coalition’s ostensible back-flip on its “reforms” to the Future of Financial Advice (FoFA) Laws, which were originally introduced by Labor to thwart mis-selling crises, will still radically change the way financial service products are sold and businesses organised.  But because politicians speak with forked tongues, and the Coalition has now occupied three different positions on the subject since December last year, the evolution of the changes needs to be traced to understand their significance.  Under Labor’s FoFA law all forms of so-called “conflicted remuneration”, including sales bonuses and commissions paid by employers or third-party product suppliers to individuals (eg, a bank teller, stockbroker, or planner) selling products to clients, were banned unconditionally for all products except loans, deposits, and insurance. This ban applied to situations where...

http://www.macrobusiness.com.au/2013/10/asic-blows-bureaucratic-smoke/ Posted by Houses and Holes in Australian Economyat 1:58pm on October 11, 2013   From ASIC chief Greg Medcraft................“Today, I want to set the record straight. My point is that in any foreign bribery investigation, criminal proceedings are the main game,” he said in a copy of his speech to the American Chamber of Commerce in Australia. “ASIC cannot – and will not – do anything to jeopardise the success of criminal actions. This is something the media has mostly chosen to ignore..........There are three points to make. ...................   The Four Corners expose on the case of corruption and bribery at RBA subsidiaries made the point that the Federal Police had investigated Securency then passed the issue to ASIC, where it disappeared.   From the ABC program: The AFP handed its evidence to the Australian Securities and Investments Commission (ASIC). In a statement, ASIC said it had reviewed the...