Australia

Credit Risk

Australia Commences Coronavirus SME Guarantee Scheme

By Editors | 12/04/2020

The 50% government guarantee under the scheme enables lenders to offer loans to SMEs “cheaply and more freely compared to ordinary business loans”.

Credit Risk

New Zealand: Mortgage Deferrals Will Not Impair Credit Ratings

By Editors | 10/04/2020

Banks have agreed with credit reporting agencies that customers who defer mortgage repayments due to Covid-19 will not have their credit ratings downgraded.

Conduct, Culture & Accountability

UPDATED – ASIC Commences Legal Proceedings For False Advertising

By Editors | 09/04/2020

ASIC alleges that companies in the Mayfair 101 Group promoted debenture products to wholesale investors using phrasing that falsely implied they were comparable to bank term deposits.

Anti-Money Laundering

HSBC Reports Possible AML Breaches at Australian Subsidiary

By Editors | 08/04/2020

Where appropriate, provisions have been made against possible penalties for underreporting of cross-border transactions and other investigations, reviews and inquiries that may involve the bank.

Fraud, Scams & Cybercrime

Australia: 10yr Jail Term Imposed for Superannuation Misappropriation

By Editors | 08/04/2020

The director of a group of companies used A$1.2mn from self-managed superannuation funds intended for property investments to “fund a lavish lifestyle”.

Structural Regulation

APRA Suspends Issuance of New Licenses

By Editors | 08/04/2020

Given the challenges new entrants face even under normal economic conditions, APRA does not consider it prudent to license new entities for at least the next six months.

Operational Risk

ASIC, APRA Offer Best Practice Recommendations on LIBOR Transition

By Editors | 08/04/2020

ASIC, APRA and the RBA warn that a failure to transition to alternative reference rates could lead to significant reputational, operational and legal risk and disrupt financial markets.

Capital Adequacy

APRA Asks ADIs, Insurers to Suspend Dividends, Cash Bonuses

By Editors | 07/04/2020

Where Boards are confident they can approve a dividend on the basis of robust stress testing results that have been discussed with APRA, it should be at a “materially reduced level”.

Anti-Money Laundering

Tiger Brokers NZ, Six Others Get Formal Warning for AML Failures

By Editors | 06/04/2020

A public warning was issued to NZX-accredited Tiger Brokers, and six additional private warnings unnamed businesses or individuals.