CBA Takes a Hit

What would Harvey Specter have said? To reveal your hand too early is just asking for trouble. Okay, so these aren’t legal negotiations, nor are these fictional characters on Suits, but CBA did not have much of a choice. In announcing its half-year results, it was obligated to disclose full details of its material financial contingencies. The accounting standards require that such disclosure is required if the contingency is probable and can also be reasonably estimated.

How can one reasonably estimate a pecuniary penalty in a time of limited precedent?

Read More

CBA's Woes

One of my early childhood memories that I still vividly recall was my first visit to a restaurant buffet. I was astonished that you pay the same amount to cram as much food onto your plate….and then you could even go back for more. Oh, the joy! My plate was full - so full that I don’t think anything would ever come as close. Well, it has taken a while, but finally, there is a person whose plate is fuller than mine from all those years ago at the Happy Dragon restaurant.

I am of course referring to the incoming CEO of CBA, Matt Comyn.

Read More

Crowd-Sourced Funding - Intermediaries

ASIC has recently established a new regime governing the process and methodology for equity-based Crowd-Sourced Funding (“CSF”). Only eligible companies which satisfy the specific requirements may participate. These companies are required to use intermediaries who host the CSF Offer on an online platform and manage the overall CSF process. These CSF Intermediaries must in turn, hold an Australian Financial Services (“AFS”) Licence with the appropriate authorisations to provide a crowd-funding service, as these activities now constitute a financial product and service.

Read More

Crowd-Sourced Funding

ASIC has recently established a new regime governing the process and methodology for equity-based Crowd-Sourced Funding (“CSF”). Specifically, the new CSF regime aims to facilitate flexible and low-cost access to capital for small to medium institutions, especially in the fintech and startup sector, whilst ensuring adequate protections still exist for retail investors.

Read More

Approach to Fintechs - ASIC and FMA

ASIC and the Financial Markets Authority (“FMA”) of New Zealand signed a Memorandum of Understanding in 2012. Today, ASIC provided details of additional co-operation between it and its trans-Tasman partner - in particular in regard to collaborating and supporting the growing fintech (financial technology) industries.

Read More

Now APRA May Pursue the Commonwealth Bank of Australia

Okay, so I was wrong. Although I hate to admit it, I was not factually correct in my earlier post about the AML/CTF issues dogging the CBA. In my piece on 14 August 2017, I noted the fact that a second regulator - ASIC, was following in AUSTRAC’s footsteps. Why have one when you can have two? I said.

Today, APRA announced that it too is establishing an independent prudential enquiry into the CBA.

Read More

Now ASIC May Pursue the Commonwealth Bank of Australia

Why have one when you can have two? That is not an unreasonable expectation when your favourite cricket team has just hit a six off the penultimate ball of the innings to get within five runs of victory. Or when, as a struggling university graduate, you receive two great job offers on consecutive days.

However, the same cannot be said of the CBA. Less than two weeks ago, AUSTRAC announced that it had initiated civil proceedings against CBA in regard to serious and systemic issues relating to alleged contraventions of the Anti-Money Laundering and Counter-Terrorism Financing Act (Cth) 2006. This involved the use of Intelligent Deposit Machines - a type of ATM which accepts cash deposits (amongst other things).

Read More

2GB’s Chris Smith, Alex Malley and Me

Chris Smith is a highly successful broadcaster on 2GB. He pretty much owns the afternoon timeslot and his success cannot be just brushed aside because you may take issue with some of his positions

In any event, following the disintegration of my BS meter after listening to one particular podcast which was choked full of fawning and kowtowing, I decided to write to Chris kindly informing him of Alex Malley’s public record.

Read More