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Money Banking royal commission: ASIC will be given power to embed staff in big four banks, AMP

03:07  07 august  2018
03:07  07 august  2018 Source:   abc.net.au

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The Royal Commission into Misconduct in the Banking , Superannuation and Financial Services Industry, also known as the Banking Royal Commission and the Hayne Royal Commission

Australian Securities and Investments Commission enforcement staff could be embedded in banks by the end of the month and might begin in the chief executive's office, according to the regulator's chairman.

Australian Securities and Investments Commission (ASIC) Chair James Shipton.© AAP Images Australian Securities and Investments Commission (ASIC) Chair James Shipton. The Australian Securities and Investments Commission (ASIC) will, for the first time, have enhanced powers to embed its enforcement staff into the major banks and wealth manager AMP as part of an "expanded armoury" to fight white-collar crime.

The corporate cop will have its budget boosted by more than $70 million as the regulator pushes back against claims at the financial services royal commission that it has been "asleep at the wheel" in the fight against corporate misconduct.

In what is described as a new supervisory "refocus", ASIC will be empowered to place dedicated staff within the "big four" banks — ANZ, Westpac, Commonwealth Bank and National Australia Bank — to directly monitor governance and compliance.

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  NAB faces more questions at banks inquiry A senior executive with National Australia Bank faces a grilling from the royal commission over fees wrongly charged to superannuation members. NAB has admitted charging more than 4000 dead superannuation customers $3 million in fees, among issues related to advice fees being deducted from super members' accounts when no service was provided.Its super trustee NULIS is paying about $120 million to compensate hundreds of thousands of customers over a separate service fee issue.

Banking royal commission : ASIC will be given power to embed staff in big four banks , AMP By senior business correspondent Peter Ryan The Australian Securities and Investments Commission ( ASIC ) will , for the first time, have enhanced powers to embed its enforcement staff into the major

The banking royal commission has heard damning revelations about the big four banks and AMP Capital. m to implement a new “supervisory approach” to the big four banks and AMP , which includes embedding staff inside those institutions.

Wealth manager AMP — which stands accused of charging fees for no service and lying to ASIC — is also included in the $8 million embedding budget as part of the crackdown on unlawful and unethical behaviour.

The expanded ASIC powers come after a lengthy review by the newly appointed ASIC chairman, James Shipton, who will announce the new funding today with Treasurer Scott Morrison and Financial Services Minister Kelly O'Dwyer.

Ms O'Dwyer told the ABC that the new funding will ensure ASIC is on the front foot in dealing with big financial companies to prevent harm to consumers before it occurs.

"These new resources will ensure that ASIC is the tough cop on the beat — the tough cop that all Australians need, and expect, ASIC to be," Ms O'Dwyer said.

NAB denies criminal acts over fees issues

  NAB denies criminal acts over fees issues The corporate regulator is investigating "suspected offending" by National Australia Bank in charging fees for no service.The corporate regulator is investigating "suspected offending" by NAB as part of wider fees-for-no-service issues across the financial services industry, documents before the banking royal commission reveal.

All four big bank bosses have said they would appear and answer questions at the royal commission if asked. Former AMP boss Craig Meller lives in a The total amount now paid or offered to customers across both groups of licensees is 9.6 million. Banking royal commission : ASIC will be given

"The package will allow ASIC to better combat corporate misconduct and misconduct in the financial services industry like never before."

The new measures also include $26.2 million to help ASIC pursue serious misconduct actions against "well funded litigants" and $6.8 million for a special taskforce to "identify and pursue failings in large listed companies" where ASIC staff could be deployed to investigate potential misconduct.

Whistleblowers who call out unlawful and unethical behaviour in the financial services sector will also receive greater protections with $6.6 million provided to enhance the Federal Government's whistleblower protection laws.

The enhanced funding for ASIC follows the Federal Government's initial resistance to call a royal commission until it caved into political and community pressure late last year.

In addition to the appointment of James Shipton as ASIC chairman, the Federal Government appointed a second deputy chair, Daniel Crennan QC, to specifically focus on enforcement.

The $70.1 million package to be announced today follows $121.3 million in additional funding provided to ASIC in 2016 to bolster its investigative and surveillance capabilities and tougher criminal and civil penalties announced in April this year.

Funding is being cut at Australia's corporate regulator and staffing levels will be reduced, according to figures in Tuesday's federal budget.

The May federal budget revealed a reduction in government funding for ASIC of $28 million over three years with average staffing levels to drop by 2 per cent — 30 positions — this financial year.

Funding will reduce from about $348 million this financial year to about $320 million in 2020-21.

'Alone in the dark with our money': Opaque super industry slammed .
Australia’s $2.6 trillion superannuation industry is shrouded in darkness due to a lack of regulation of the conduct of the trustees running funds, the royal commission has heard. The criticism of the lack of regulation of the sector was delivered by counsel assisting the royal commission, Michael Hodge, QC, at the start of two weeks of hearings into misconduct within the sector. Mr Hodge started the morning by pointing out the gap created by the way the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) regulated the sector.

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