Australia

Emerging Prudential Risks

RBNZ Proposes Removal of Mortgage Lending Restrictions

By Editors | 22/04/2020

The RBNZ intends to remove existing LVR restrictions for a period of one year, to help banks to keep lending to support customers, including with mortgage deferrals.

Operational Risk

APRA Announces Reporting Requirement for Early Superannuation Release

By Editors | 21/04/2020

RSE licencees are asked to complete and submit APRA’s new Early Release Initiative data collection form on a weekly basis. The first data collection is due on 20 April.

Credit Risk

APRA Announces Reporting Requirement for SME Guarantee Scheme

By Editors | 18/04/2020

Lenders approved to participate under the Scheme must complete the new returns on a weekly basis, with the first collection due on 1 May.

Model Risk

RBNZ Working with ANZ NZ to Improve Model Compliance

By Editors | 18/04/2020

The latest section 95 report identifies that 17 wholesale credit models and the operational risk capital model approach currently in use at ANZ NZ are not approved by the RBNZ.

Conduct, Culture & Accountability

Australian Court Upholds ASIC Product Intervention Order

By Editors | 16/04/2020

ASIC’s product intervention order prohibiting payday lenders to charge additional fees under separate contracts through associates remains in force.

Trading & Investment

ASIC Updates Guidance on Active ETF Internal Market Making

By Editors | 16/04/2020

Active ETFs are asked to rely on publicly available information for market making quotes, and to establish internal information barriers.

Operational Risk

APRA Announces New Commencement Dates for Prudential Standards

By Editors | 16/04/2020

The new commencement dates relate to initial margin requirements and APRA’s prudential standards on information security, credit risk management and related entity exposures.

Liquidity Risk

ASIC Eases Financial Advice Rules to Facilitate Super Withdrawals

By Editors | 15/04/2020

Under ASIC relief, advice providers, tax agents and superannuation trustees are allowed to advise consumers on early withdrawals of their superannuation savings.

Anti-Money Laundering

Westpac Expects to Pay A$900m Over AML Breaches

By Editors | 14/04/2020

While the bank expects to make a provision of A$900mn over AUSTRAC’s claim, it says the actual penalty may be materially higher or lower than this amount.