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☆ Regulator cancels license of FTX's Australian business
▼ + stars: | 2023-07-19 | by ( ) www.reuters.com time to read: +1 min

July 19 (Reuters) - Australia's securities regulator said on Wednesday it had cancelled the license of the local arm of collapsed U.S. cryptocurrency exchange FTX, effective from July 14. The Australian Securities & Investments Commission (ASIC) had last November suspended the license until May, taking back FTX's permit to deal in derivative and foreign exchange contracts to retail and wholesale clients. FTX Australia can continue to provide limited financial services for terminating existing derivatives with clients until July 12, 2024, the regulator said on Wednesday. The license cancellation has no effect on requirements for FTX Australia to continue as a member of Australian Financial Complaints Authority, and to have arrangements for compensating retail clients, it added. Reporting by Harish Sridharan in Bengaluru; Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.

Persons: Sam Bankman, FTX, Harish Sridharan, Sherry Jacob, Phillips Organizations: U.S, Australian Securities & Investments Commission, Australian Financial, Authority, Thomson Locations: Bahamas, Australia, Bengaluru

☆ Deloitte Australia CEO admits he isn't worth his $2.3 million pay package in a public hearing over salaries and misconduct at consultancy firms
▼ + stars: | 2023-07-17 | by ( Sawdah Bhaimiya | ) www.businessinsider.com time to read: +3 min

Deloitte executives were questioned about the company's integrity at a public hearing on Monday. During the hearing, Deloitte Australia's CEO Adam Powick admitted to being overpaid. Powick reportedly earns $3.5 million AUD ($2.3 million). The CEO of Deloitte Australia admitted to being "incredibly privileged" for his hefty $3.5 million AUD ($2.3 million) pay packet at a public hearing on Monday, according to various local news reports. The CEO, who reportedly earns $3.5 million AUD ($2.3 million), was then asked by Pocock: "Are you really worth seven times the salary of the Australian prime minister?"

Persons: Adam Powick, Powick, Adam Powick –, –, Tom Imbesi, Barbara Pocock, Pocock, didn't, Anthony Albanese, Sneza Pelusi Organizations: Deloitte, Deloitte Australia, PWC, Reuters, ABC, Australia's, ABC News, Australian Securities and Investments Commission Locations: Australia, PWC Australia

The cost to make a flat white, one of the most popular Australian coffee orders, jumped by nearly one-fifth. The result is smaller profits, a shrinking pool of regular customers and business owners heading for the exit. Before COVID-19, hospitality venues were about one-third of Australian small businesses advertised for sale. It paused in July but warned it may resume hiking if inflation, still running at 7%, fails to slow. "Some of my regulars I used to have will still come and get coffee and say, 'We had to bring lunch.

Persons: Jack Hanna, Hanna, Damian Krigstein, Peter Meredith, Guy Cooper, insolvencies, Patrick Coghlan, that's, David Cox, Cox, Byron Kaye, Lewis Jackson, Praveen Menon, Sonali Paul Organizations: Reuters, SBS Business, Link Business Sales Australasia, Australian Securities and Investments, Thomson Locations: SYDNEY, Europe, Sydney, Ukraine, Sydney's

☆ Australia's BNPL firm Zip to streamline cost and operations - official
▼ + stars: | 2023-07-03 | by ( ) www.reuters.com time to read: +1 min

July 3 (Reuters) - Australian buy-now-pay-later firm Zip Co (ZIP.AX) is further streamlining its operations and cost base following a recent review, a company official told Reuters on Monday. "Following a recent review, we have made decisions to further streamline our operations and cost base," Vivienne Lee, director for investor relations, said in an emailed comment. The new law would require BNPL firms to run credit checks before lending, notifying customers when credit limits increase and following dispute resolution processes. It also aims to reduce cash burn from the rest of its global operations by the end of 2023. Shares of Zip, which tanked over 88% last year, are down nearly 16% this year as of Monday's close.

Persons: Vivienne Lee, Zip, Ayushman Ojha, Nausheen Thusoo, Rashmi Aich, Dhanya Ann Thoppil Organizations: Co, Reuters, Australian Securities and Investments Commission, Thomson Locations: Australia, Central, Eastern Europe, South Africa

☆ Australian general insurers to repay $550 million over pricing misconduct
▼ + stars: | 2023-06-22 | by ( ) www.reuters.com time to read: +1 min

June 23 (Reuters) - Australian general insurers will repay A$815 million ($550.29 million) to more than 5.6 million consumers due to their systemic failures in delivering on pricing promises, the country's corporate regulator said on Friday. A report published by the Australian Securities and Investments Commission (ASIC) found insurers did not always have adequate oversight and controls over the pricing promises made or delivered by the distributors of their products. Acting upon pricing failures reported since Jan. 1, 2018, ASIC's Deputy Chair Karen Chester said systemic pricing failures were a result of "unnecessary complexity in pricing promises and pricing practices — accounting for the lion's share (at least A$379 million) of the remediation". Back in October 2021, the regulator had directed 11 general insurers, including Insurance Australia Group (IAG.AX), QBE Insurance (Australia) Limited and the local subsidiary of Allianz (ALVG.DE) to complete comprehensive reviews to find, fix, report and repay customers for pricing failures. "It's now up to the boards of general insurers to ensure the prompt and full repayment of the A$815 million owed to their 5.6 million customers, implement the fixes needed and rebuild consumer trust," added Chester.

Persons: Karen Chester, It's, Jaskiran Singh, Krishna Chandra Organizations: Australian Securities and Investments Commission, Insurance Australia Group, QBE Insurance, Allianz, Thomson Locations: Australian, Australia, Chester, Bengaluru

☆ Interim stop order for Humm's BNPL products revoked
▼ + stars: | 2023-05-28 | by ( ) www.reuters.com time to read: +1 min

May 29 (Reuters) - Australian fintech company Humm Group (HUM.AX) said on Monday an interim stop order issued by the country's corporate regulator restricting it from issuing buy-now-pay-later (BNPL) products to new customers had been revoked. The interim stop order issued last week against Humm's unit was related to the Australian Securities and Investments Commission's (ASIC) concerns regarding the target market determination for its BNPL products. Target market determination rules require issuers of BNPL products to consider whether a product aligns with the financial objectives, circumstances and needs of consumers. "Hummgroup has addressed ASIC's concerns regarding the target market determination for the humm Buy Now Pay Later product," the company said in statement. The company's BNPL product is again available to new customers following the revocation, it added.

☆ Australia's AMP fined $16.3 mln for charging fees to deceased clients
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +1 min

The penalty ordered by the court was under proceedings brought forward by the country's corporate regulator, Australian Securities and Investments Commission (ASIC), in 2021 against AMP trustees – AMP Super and NM Super, AMP Financial Planning, AMP Life and AMP Services. AMP had disclosed in 2018 that it had charged thousands of customers for financial advice it never gave, despite knowing they had deceased as it had no system in place to prevent dead clients from being billed. The company said the court has charged AMP Life and AMP Financial Planning with the fine. The penalty handed down was fully provisioned for by the company in its financial statements for the year ended Dec. 31, 2022, AMP said. ($1 = 1.4743 Australian dollars)Reporting by Riya Sharma in Bengaluru; editing by Uttaresh VenkateshwaranOur Standards: The Thomson Reuters Trust Principles.

☆ Analysis: Australian banks' bid to shake mortgage reliance brings new risks
▼ + stars: | 2023-05-16 | by ( Byron Kaye | ) www.reuters.com time to read: +5 min

"When there's a macroeconomic downturn, it's generally institutional and business lending exposures that are impacted first," he added. For decades, Australian housing finance has significantly outpaced business lending, making home loan margins the engine of profits. A more recent exodus from non-lending retail services like financial advice has further weighted banks' allocation of capital to residential property. The big four banks said in earnings updates this month that their net interest margins peaked in late 2022 and have since narrowed. To hedge against interest rates risks, the Big Four may now chase new services-based revenues from commercial clients in non-lending segments, added Garland.

ASIC on Thursday cancelled the Australian financial services licence of Oztures Trading Pty Ltd, trading as Binance Australia Derivatives (Binance), in response to a request from the company. “Our targeted review of these matters is ongoing, including focus on the extent of consumer harms.”The financial services licence authorised Binance to issue derivatives and foreign exchange contracts. Noting many cryptocurrency products and services are not regulated by ASIC, Longo said the regulator supported a "regulatory framework" for the asset class. Binance said in a statement it had decided to pursue a "more focused approach" in Australia after "recent engagement with ASIC". The world's largest cryptocurrency exchange is battling regulatory suits and probes around the world.

Binance's Australian derivatives license was canceled at the crypto exchange's own request, the Australian Securities & Investments Commission said Thursday, after the regulator had begun a "targeted review of Binance" in February. Binance's exchange token was down just under 0.5% Thursday morning. Binance's regulatory scrutiny has been mounting in recent weeks and months. An apparently inadvertent compliance issue led to the Australian regulatory probe. Australia's top securities regulator has had a challenging relationship with the crypto industry in recent months, pursuing enforcement actions against several firms which the regulator alleges have violated Australian law.

Companies Vanguard Group Inc FollowMarch 29 (Reuters) - New Zealand's financial markets regulator issued a warning to U.S. fund giant Vanguard Group on Wednesday for failing to disclose details within the required time over infringement notices filed against it in Australia for alleged greenwashing. These funds were also offered to New Zealand investors via a mutual recognition scheme but Vanguard missed the deadline by nearly two months to notify the Financial Markets Authority (FMA) about the action by ASIC, Australia's securities regulator, it said. "Vanguard Australia regrets our oversight in failing to comply with our notification obligations to the Financial Markets Authority of New Zealand," a spokesperson said in an emailed response. Vanguard failed to identify its obligations and did not have adequate processes in place to ensure that it filed the required notice within the required period, FMA said in a statement. Vanguard's breach, if not addressed, could harm the integrity of an agreement between Australia and New Zealand over market offerings, it added.

☆ Australia's key financial regulators to review global banking turmoil
▼ + stars: | 2023-03-28 | by ( Renju Jose | ) www.reuters.com time to read: +2 min

SYDNEY, March 28 (Reuters) - Australian Treasurer Jim Chalmers will convene a meeting of the country's top financial regulators to check how the latest volatility in global financial markets could affect the country, an official in the treasurer's office said on Tuesday. Australia's Council of Financial Regulators (CFR) will meet on Thursday after Chalmers discussed the latest market turmoil in phone calls with U.S. Treasury Secretary Janet Yellen on Tuesday and European Central Bank President Christine Lagarde overnight. "It's clear from my conversations that international authorities are prepared to do what's necessary to reassure markets at a time of uncertainty and volatility," Chalmers said in a statement. The discussions with key global financial officials come ahead of meetings of the World Bank and the International Monetary Fund in Washington, D.C. from April 10 to 16, which Chalmers is expected to attend. Coordinated action by global central banks and international financial authorities have helped ease some concerns but the volatility is contributing to uncertainty more generally in the global economic outlook, Chalmers said.

☆ Crypto firm Animoca Brands cuts target for new fund again -sources
▼ + stars: | 2023-03-24 | by ( Josh Ye | ) www.reuters.com time to read: +2 min

Animoca Brands said in November that it was working on a new Animoca Capital fund with a target of $2 billion, but then halved that target in January to $1 billion. Recently, it has trimmed the target by another 20% to $800 million, two people familiar with the matter said. Latest data on the platform show that the company’s market cap stood at just under 1.9 billion Australian dollars ($1.26 billion) earlier this week. A spokesperson for Animoca Brands declined to comment on its fund raising plans. Animoca Brands was removed from the Australian Securities Exchange in 2020 by the regulator because of its aggressive expansion into the cryptocurrency industry.

☆ Ex-Tesla director who pleaded guilty to insider trading will be released on the condition of 'good behavior'
▼ + stars: | 2023-03-21 | by ( Grace Kay | ) www.businessinsider.com time to read: +3 min

Kurt Schlosser pleaded guilty to profiting over $28,883 off knowledge of Tesla's deal with a mining company. He'll be released on the condition of "good behavior," but can't manage a company for five years. Spokespeople for Tesla and Piedmont Lithium did not respond to a request for comment ahead of publication. Tesla first announced a five-year agreement with Piedmont Lithium in 2020 on the heels of the electric-car maker's "Battery Day." At the time of the announcement, shares of the mining company surged as much as 83% to their highest level since 2007.

☆ Former director of Tesla Australia sentenced for insider trading
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +1 min

March 21 (Reuters) - A former director of Tesla Inc's (TSLA.O) Australian unit was sentenced to two years and six months imprisonment and will be released immediately on the condition of "good behaviour", Australia's corporate watchdog said on Tuesday. The sentence follows the former director's guilty pleas to two insider trading offences tied to a supply deal the electric-car maker signed with Piedmont Lithium Inc (PLL.O) in 2020, according to the Australian Securities and Investments Commission (ASIC). Schlosser sold the shares for a realised profit of $28,883.53 after the agreement became public, according to the watchdog. The regulator added that Schlosser communicated information to a friend "in circumstances where it was likely" that the person would acquire Piedmont shares. Tesla and Piedmont Lithium did not immediately respond to Reuters' requests for comments.

☆ Australian court fines ANZ Group $6.6 mln for breaching consumer protection laws
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +1 min

March 10 (Reuters) - An Australian court has fined ANZ Group Holdings (ANZ.AX) A$10 million ($6.6 million) in penalties for non-compliance with consumer credit protection laws in a case that stems from the country's Royal Commission proceedings, a corporate watchdog said on Friday. The Australian Securities & Investments Commission (ASIC) said the fine related to the lender's home loan introducer program – that allowed third parties to refer customers for home loans – between March 2017 and March 2018. The court case stems from a 2017 Royal Commission inquiry into Australia's financial services industry, which ended up exposing widespread misconduct in the sector. "ANZ has cooperated with ASIC during this process, is nearing completion of a customer remediation program and has made changes to its home loan processes," the bank said. ($1 = 1.5161 Australian dollars)Reporting by Navya Mittal in Bengaluru; Editing by Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.

☆ Australian regulator says banks paid $3.10 bln in compensation for wrongly charged fees
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +1 min

[1/3] Australian dollars are seen in an illustration photo February 8, 2018. REUTERS/Daniel MunozMarch 10 (Reuters) - Australia's corporate watchdog said the country's six largest banking services providers have paid or offered A$4.7 billion ($3.10 billion) in compensation to customers who suffered losses for fees charged for services that were not provided. The largest business lender in Australia, NAB, took the lead and coughed up A$1.49 billion in compensation as of the end of 2022, followed by CBA and Westpac coughing up a payout of A$1.13 billion and $1.03 billion, respectively. ASIC said its final update on remediation figures "draws a line" under its eight-year long programme of addressing financial institutions' failure to provide ongoing services to fee-paying customers. ($1 = 1.5177 Australian dollars)Reporting by Riya Sharma in Bengaluru; Editing by Krishna Chandra Eluri and Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

☆ LG Chem Buys Stake in North Carolina Lithium Miner
▼ + stars: | 2023-02-20 | by ( Yusuf Khan | ) www.wsj.com time to read: +3 min

South Korea’s LG Chem will take a stake in Piedmont Lithium Inc., boosting its North American presence and banking on incentives to scale up its role in U.S. electric-vehicle supply chain. LG Chem will commit $75 million to Piedmont in return for a 5.7% stake in the miner, whose shares are listed on the Nasdaq and Australian Securities Exchange. PREVIEWThe U.S. is our key market and by preemptively securing raw materials this deal allows LG Chem to provide North American customers with products that satisfy IRA standards, said Mr. Hak-Cheol Shin, Vice Chairman and CEO of LG Chem in a statement. LG Chem is planning to build a $3 billion cathode plant in Clarksville, Tenn., slated to open in 2027. Already, Piedmont has an existing contract to supply Tesla with 50,000 tons annually until 2025, in addition to its new LG Chem supply deal.

☆ PayPal tells Australia it supports buy-now-pay-later regulation
▼ + stars: | 2023-02-16 | by ( Byron Kaye | ) www.reuters.com time to read: +3 min

SYDNEY, Feb 16 (Reuters) - Payments giant PayPal Holdings Inc (PYPL.O) wants buy-now-pay-later (BNPL) loans subjected to consumer protection law, it said in a submission to the Australian government, adding a powerful voice from inside the sector calling for regulation. Many other companies which sell BNPL loans said in submissions that they supported minimal or self-regulation. BNPL companies attract shoppers by charging no interest and make money from retailer fees. The company saw "merit in further consideration of the development of a bespoke BNPL credit reporting framework" without the full "costs typically associated with engaging in the credit reporting regime". The government has said it wants BNPL regulation in place in 2023.

☆ Australian regulator to review short-seller report on India's Adani
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +2 min

[1/2] The logo of the Adani Group is seen on the facade of its Corporate House on the outskirts of Ahmedabad, India, January 27, 2023. REUTERS/Amit DaveSYDNEY, Feb 1 (Reuters) - Australia's corporate regulator said on Wednesday it will review a short-seller report that has flagged a wide range of concerns about India's Adani Group. Bravus, an Australian Adani Group company, said in a statement that the group "refutes all allegations" made in the Hindenburg report about its Australian operations and that it has publicly provided evidence to back up its stance. Adani Group's Australian businesses all comply with the law, a spokesperson said, adding that none had been contacted by ASIC or the Australian Tax Office about Hindenburg Research's allegations. The Hindenburg report "presents transactions related to Adani's Australian businesses in a misleading way to purposefully undermine the reputation of the Adani Group, in order to pursue their own profit by short-selling shares in Adani Group companies," the statement said.

☆ Australian securities regulator reviewing short-seller report on India's Adani
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +1 min

SYDNEY, Feb 1 (Reuters) - Australia's corporate regulator is reviewing a short-seller report that accused India's Adani Group of improper use of offshore tax havens to determine whether regulatory action is required, according to a spokesperson. "ASIC will review the allegations against Adani and determine whether further inquiries are warranted," a spokesperson for the regulator told Reuters on Wednesday. The Adani Group said in a statement that the Hindenburg report "presents transactions related to Adani’s Australian businesses in a misleading way to purposefully undermine the reputation of the Adani Group, in order to pursue their own profit by short-selling shares in Adani Group companies." "All our businesses are Australian companies that comply with Australian corporations and securities legislation," the statement said. On Tuesday, a crucial $2.5 billion share sale for the Adani Group was fully subscribed with foreign institutional investors and corporate funds taking part, although participation by retail investors was low.

☆ FTX was under surveillance by Australian regulators over 6 months before its collapse, documents reportedly show
▼ + stars: | 2023-01-30 | by ( Pete Syme | ) www.businessinsider.com time to read: +3 min

FTX was surveilled by Australian financial regulators as early as March 2022, per the Guardian. FTX Australia obtained a regulatory license after acquiring a company that already had one. That article reported that the crypto exchange would lend customers as much as 20 times their investment to buy crypto assets. Almost 30,000 investors in Australia lost money to the crypto exchange, the Australian Financial Review previously reported. The regulator confirmed to the Guardian that it had made inquiries with FTX Australia since March 2022, and investigations were ongoing.

☆ Bain Capital Considers Virgin Australia IPO as Travel Demand Rebounds
▼ + stars: | 2023-01-16 | by ( Rhiannon Hoyle | ) www.wsj.com time to read: 1 min

ADELAIDE, Australia—Bain Capital is considering an initial public offering of Australia’s second-largest airline in what would be a new test of investor appetite for carriers in a turbulent postpandemic recovery. On Monday, Bain Capital said as a first step, it will soon ask advisers about the best timing, structure and metrics for relisting Virgin Australia on the Australian Securities Exchange .

SYDNEY, Jan 16 (Reuters) - Bain Capital said on Monday it is looking to relist Virgin Australia - a move that comes as the domestic aviation market bounces back strongly from its pandemic lows. "In the coming months we will consider how to best position Virgin Australia for continued growth and long term prosperity," Mike Murphy, a Sydney-based partner at the U.S. private equity firm said in a statement. "It is Bain Capital’s current intention to retain a significant shareholding in a future IPO of Virgin Australia." Bain bought Virgin Australia for A$3.5 billion ($2.45 billion) including liabilities in 2020 after the airline was placed in voluntary administration. There were just $614.2 million worth of IPOs in Australia in 2022, down nearly 93% from $8.4 billion a year earlier, according to Refinitiv data.

☆ Asia-Pacific markets set to trade mixed on cooled U.S. inflation outlook
▼ + stars: | 2023-01-16 | by ( Jihye Lee | ) www.cnbc.com time to read: 1 min

People look at a smartphone in front of electronic boards displaying stock information inside the Australian Securities Exchange, operated by ASX Ltd., in Sydney, Australia. Markets in the Asia-Pacific were set to trade mixed as expectations of cooled inflation in the U.S. lifted investor sentiment in the region. On Friday, the University of Michigan consumer sentiment survey showed the one-year inflation outlook fell to 4%, the third straight monthly decrease and the lowest level since April 2021. In Australia, the S&P/ASX 200 rose 0.5% in its first hour of trade. The Nikkei futures contract in Chicago was at 25,830 while its counterpart in Osaka was at 25,780 — lower than the Nikkei 225 's last close at 26,119.52.

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