Australia

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.

Conduct, Culture & Accountability

ASIC Shifts Focus to Ensure Market Integrity, Protect Consumers

By Editors | 14/04/2020

Covid-19 has raised the risk of significant consumer harm and serious breaches of financial services laws, says ASIC chair James Shipton.

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.