The Commonwealth Bank has insisted that customer information has not been...

Transcription

1 THU 03 MAY 2018 Media Clippings The Commonwealth Bank has insisted that customer information has not been... 2GB, Sydney, 08:00 News, Newsreader 8:00 AM Duration: 0 min 23 secs ASR AUD 1,731 NSW Australia Industry Super Australia - Radio & TV ID: X The Commonwealth Bank has insisted that customer information has not been compromised after admitting it lost historical financial statements from 20 million accounts. Regulators were informed, but the bank decided not to tell affected customers. 230,000 All, 106,000 MALE 16+, 115,000 FEMALE 16+ Also broadcast from the following 13 stations 2BS (Bathurst), 2EC (Bega), 2GN (Goulburn), 2LT (Lithgow), 2MAX (Narrabri), 2NUR (Newcastle), 2QN (Deniliquin), 2XL (Cooma), 2YOU FM (Tamworth), Coast FM (Gosford), Great Lakes FM (Taree), Macquarie Sports Radio (Sydney), Magic 2CH (Sydney) COPYRIGHT This report and its contents are for the internal research use of Mediaportal subscribers only and must not be provided to any third party by any means for any purpose without the express permission of Isentia and/or the relevant copyright owner. For more information contact copyright@isentia.com DISCLAIMER Isentia makes no representations and, to the extent permitted by law, excludes all warranties in relation to the information contained in the report and is not liable for any losses, costs or expenses, resulting from any use or misuse of the report.

2 Lane is joined by Peter Ryan, Senior Business Correspondent. Lane mentions... ABC Radio Canberra, Canberra, AM, Sabra Lane 8:00 AM Duration: 4 mins 58 secs ASR AUD 72,109 National Australia Industry Super Australia - Radio & TV ID: X Lane is joined by Peter Ryan, Senior Business Correspondent. Lane mentions Commonwealth Bank has admitted it lost the financial statements of nearly 20 million account. She says the bank has realised the breach in 2016 but only recently confessed on the data breach. She mentions the bank says customers' data are safe as there is no evidence of customers information being compromised. Ryan says any slip-up from banks such as CBA is big news given the drop of revelations from the Royal Commission. He mentions they are still seeing the fallout from the Facebook data breach which involved Cambridge Analytica. He says CBA's monitoring suggests customers don't need to take any action. He mentions customers reacted why they weren't told earlier as their personal data is involved. He says he spoke with CBA acting head of retail banking Angus Sullivan. He mentions Sullivan says there was no disclosure even though CBA can't be 100% sure the data was destroyed. Sullivan says they immediately launched an investigation to understand what happened. He mentions they are not sure the drives containing the data were destroyed as they don't have documentation but there's nothing to indicate the data has made its way into malicious party's hand. Ryan mentions the CBA said they took the matter to the Office of the Australian Information Commissioner and the banking regulator APRA. He says there was a briefing about CBA's investigation and they decided not to notify customers as monitoring was in place. He mentions CBA had an external forensic investigation by KPMG. He says customers should've been warned even though CBA has advised the issue to Australian Stock Exchange. He says the matter of full and continuous disclosure is something ASIC is already investigating. Lane mentions APRA's report earlier this week saying CBA had been complacent. Ryan says the timing is very bad for CBA given APRA's criticisms. He mentions CBA's new CEO Matt Comyn has pledged to turn the CBA around and to change the culture. 370,200 All, 174,400 MALE 16+, 191,800 FEMALE 16+ Interviewees Angus Sullivan, acting head of retail banking, CBA Peter Ryan, senior business correspondent Also broadcast from the following 49 stations ABC Alice Springs (Alice Springs), ABC Ballarat (Ballarat), ABC Broken Hill (Broken Hill), ABC Capricornia (Rockhampton), ABC Central Victoria (Bendigo), ABC Central West NSW (Orange), ABC Coffs Coast (Coffs Harbour), ABC Esperance (Esperance), ABC Eyre Peninsula and West Coast (Port Lincoln), ABC Far North (Cairns), ABC Gippsland (Sale), ABC Gold Coast (Gold Coast), ABC Goldfields WA (Kalgoorlie), ABC Goulburn Murray (Wodonga), ABC Great Southern (Albany), ABC Illawarra (Wollongong), ABC Kimberley (Broome), ABC Midwest and Wheatbelt (Geraldton), ABC Mildura - Swan Hill (Mildura), ABC New England North West (Tamworth), ABC Newcastle (Newcastle), ABC North and West SA (Port Pirie), ABC North Coast NSW (Lismore), ABC North Queensland (Townsville), ABC North West Qld (Mt Isa), ABC North West WA (Karratha), ABC Northern Tasmania (Launceston), ABC Radio Adelaide (Adelaide), ABC Radio Brisbane (Brisbane), ABC Radio Darwin (Darwin), ABC Radio Hobart (Hobart), ABC Radio Melbourne (Melbourne), ABC Radio Perth (Perth), ABC Radio Sydney (Sydney), ABC Riverina (Wagga Wagga), ABC Riverland SA (Renmark), ABC Shepparton (Shepparton), ABC South East NSW (Bega), ABC South East SA (Mt Gambier), ABC South West WA (Bunbury), ABC South Western Victoria (Warrnambool), ABC Southern Queensland (Toowoomba), ABC Sunshine Coast (Sunshine Coast), ABC Tropical North (Mackay), ABC Upper Hunter (Muswellbrook), ABC Western Plains NSW (Dubbo), ABC Western Queensland (Longreach), ABC Western Victoria (Horsham), ABC Wide Bay (Bundaberg) COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

3 Regular Segment: Finance with Rachel Pupazzoni... ABC News, Sydney, News Breakfast, Michael Rowland, Virginia Trioli and Paul Kennedy 7:32 AM Duration: 2 mins 49 secs ASR AUD 42,335 National Australia Industry Super Australia - Radio & TV ID: X Regular Segment: Finance with Rachel Pupazzoni - Cambridge Analytica, the company at the centre of the Facebook data scandal, has announced it's shutting down. The company and its parent company SCL Group will being bankruptcy proceedings after losing clients and facing mounting legal fees. - AMP has been put on negative ratings notice by rating agency Standard and Poor's. The agency says revelations in the Banking Royal Commission have damaged the brand and its reputation. - The ASX is urging company boards to heed calls to act lawfully and ethically. - The Eurozone is now growing faster than the UK economy. 263,000 All, 136,000 MALE 16+, 126,000 FEMALE 16+ Vision AMP, Cambridge Analytica, CBA, Facebook Also broadcast from the following 22 stations ABC (Hobart), ABC (Darwin), ABC (Sydney), ABC (Brisbane), ABC (Adelaide), ABC (Melbourne), ABC (Perth), ABC (Canberra), ABC (Regional Queensland), ABC (Regional Victoria), ABC (Regional NSW), ABC (Albany), ABC News (Melbourne), ABC News (Regional NSW), ABC News (Brisbane), ABC News (Adelaide), ABC News (Perth), ABC News (Regional Queensland), ABC News (Hobart), ABC News (Canberra), ABC News (Regional Victoria), ABC News (Regional West Australia) Barr says the CBA has admitted that it lost personal details of up to 20 million accounts.... Channel 7, Melbourne, Sunrise, David Koch, Sam Armytage, Natalie Barr, Mark Beretta 7:16 AM Duration: 1 min 59 secs ASR AUD 116,697 National Australia Industry Super Australia - Radio & TV ID: X Barr says the CBA has admitted that it lost personal details of up to 20 million accounts. Barr notes that the CBA was holding top secret files which were meant to be destroyed by a subcontractor but they lost track of it in Angus Sullivan, Acting Group Executive, CBA, says the tapes didn't contain anything that could enable account fraud. Bar mentions that the decision not to alert customers was made after speaking and getting an agreement with the regulators. Barr says the CBA has already launched an investigation into this matter and believes nobody has been compromised. 411,000 All, 165,000 MALE 16+, 235,000 FEMALE 16+ Interviewees Angus Sullivan, Acting group executive, CBA Also broadcast from the following 43 stations Central GTS/BKN Port Lincoln (Port Lincoln), Central GTS/BKN Port Pirie (Spencer Gulf), Channel 7 (Sydney), Channel 7 (Brisbane), Channel 7 (Adelaide), Channel 7 (Perth), GWN7 (Perth), Prime7 ACT (Canberra), Prime7 Albury (Albury), Prime7 Armidale (Armidale), Prime7 Ballarat (Ballarat), Prime7 Bendigo (Bendigo), Prime7 Coffs Harbour (Coffs Harbour), Prime7 Cooma (Cooma), Prime7 Dubbo (Dubbo), Prime7 Gippsland (Sale), Prime7 Gold Coast (Gold Coast), Prime7 Griffith (Griffith), Prime7 Mildura (Mildura), Prime7 Moree (Moree), Prime7 Newcastle (Newcastle), Prime7 North Coast (Lismore), Prime7 Orange (Orange), Prime7 Shepparton (Shepparton), Prime7 Swan Hill (Swan Hill), Prime7 Tamworth (Tamworth), Prime7 Taree (Manning River), Prime7 Wagga Wagga (Wagga Wagga), Prime7 Warrnambool (Warrnambool), Prime7 Wollongong (Wollongong), Seven Bundaberg (Bundaberg), Seven Cairns (Cairns), Seven Central (Alice Springs), Seven Mackay (Mackay), Seven Mt Isa (Mt Isa), Seven Rockhampton (Rockhampton), Seven Sunshine Coast (Sunshine Coast), Seven Toowoomba (Toowoomba), Seven Townsville (Townsville), Southern Cross Central (Alice Springs), Southern Cross Darwin (Darwin), Southern Cross GTS/BKN Broken Hill (Port Pirie), Southern Cross Tasmania (Hobart) COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

4 Interview with Nigel Phair, Director of Centre for Internet Safety, University of Canberra.... ABC Radio Adelaide, Adelaide, Breakfast, Ali Clarke 7:13 AM Duration: 6 mins 30 secs ASR AUD 5,370 SA Australia Industry Super Australia - Radio & TV ID: X Interview with Nigel Phair, Director of Centre for Internet Safety, University of Canberra. According to Clarke, Rundle Mall is using NAB credit or debit card statements to create a database of shoppers. Clarke asks Phair if it is a common practice, noting NAB has done a deal with a data analytics firm. Phair confirms it is a common practice, warning consumers' data is highly valuable for marketers. He explains the shopper's transaction history will be obtained, and an analysis of where and how the card was used will be executed. Phair also notes the huge amount of data being collected in connecting to free or public WiFi. Clarke says they are still waiting for the Rundle Mall Management Authority to return their call. The management told them the collected information is handled anonymously. Clarke then mentions previous data breach involving Facebook and Cambridge Analytica. She asks if there is a way to re-identify the harvested information. Phair says it is not just about personally identifying the information, citing the Commonwealth Privacy Act. He notes how online platforms talk about names, address, dates of birth and other personal information. Phair reckons these data can help analytics firms to identify the person's shopping habits. He believes supermarkets have been collecting data, and they are their own data analytics firm. Clarke then asks if Woolworths also owns a data firm. Phair reiterates it is not just Woolworths because a number of supermarket chains really does the practice. He notes through it, the supermarkets can really do a targeted advertising against the consumer. Clarke mentions in the US and the Adelaide Oval, many stores are already cashless. Phair agrees, jesting the Tax Office loves it. He reckons people really do not understand how their data being exploited by marketing companies. Clarke then notes Cambridge Analytica's London-based firm has announced it will close down. She says the company was hired by Donald Trump's campaign team, and it was accused of improperly accessing data of nearly 90 million Facebook users for political purposes. Clarke then asks where will the harvested data go once Cambridge Analytica closes down. Phair hopes it will be deleted, but he also thinks it could be sold to other data firm companies. Clarke then mentions that Facebook is going to collaborate with a dating site. Phair says if the Facebook user does not have a relationship status, he can guarantee the person will get a dating site advertisements. [cont] 35,000 All, 19,000 MALE 16+, 16,000 FEMALE 16+ Interviewees Nigel Phair, Director of Centre for Internet Safety, University of Canberra COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

5 Interview with Peter Ryan, the Senior business correspondent. Lane says the CBA bank,... Radio National, Canberra, AM, Sabra Lane Duration: 3 mins 19 secs ASR AUD 136,819 National Australia Industry Super Australia - Radio & TV ID: X :10 AM Interview with Peter Ryan, the Senior business correspondent. Lane says the CBA bank, last night, admitted it lost two magnetic tapes which contain financial statements of nearly 20m bank accounts in 2016 where it was supposed to be destroyed. She says the bank has assured that no customer information has been compromised but it is embarrassing to the bank. Ryan agrees and says the recent admission adds to the misconducts committed by the bank. He says the CBA has said there is no evidence that customer information being compromised. Lane says the bank didn't inform customers when it realised it lost the magnetic tapes. Ryan says the CBA has said it informed the Office of the Australian Information Commission as well as the banking regulator APRA. He says the board decided not to inform their customers because of the monitoring in place. Ryan says there was also an external forensic investigation by the KPMG. Ryan says the CBA kept the matter from the public because they believe the magnetic tapes have been destroyed. He says the matter of full continuous disclosure is something the corporate regulator ASIC is already investigating. He says there are allegations that the CBA allegedly breached any anti-money laundering laws up to 54,000 times. Lane says APRA has reported that CBA had been complacent. Ryan says Matt Comyn, CEO, CBA, had told him he will rectify CBA's misconducts. 125,000 All, 62,000 MALE 16+, 61,000 FEMALE 16+ Interviewees Peter Ryan, the Senior business correspondent Also broadcast from the following 8 stations Radio National (Sydney), Radio National (Melbourne), Radio National (Brisbane), Radio National (Perth), Radio National (Hobart), Radio National (Adelaide), Radio National (Darwin), Radio National (Newcastle) Shaw says Catherine Brenner receives $660,000 as the chairperson of AMP. He says... 2CC, Canberra, Breakfast, Tim Shaw 7:07 AM Duration: 2 mins 18 secs ASR AUD 245 ACT Australia Industry Super Australia - Radio & TV ID: X Shaw says Catherine Brenner receives $660,000 as the chairperson of AMP. He says Brenner is also on the board of Coca-Cola Amatil and Boral. He notes that Brenner stood down from the position as chair of the AMP in light of the revelations from the Financial Services and Bank Royal Commission. He quotes Australian Institute of Company Directors CEO Angus Armour, saying some of audit and risk management reports can be up to 900 pages long. Shaw maintains it is the duty of the director to ensure the governance of the company is protected. 4,000 All, 2,000 MALE 16+, 2,000 FEMALE 16+ COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

6 Interview with Ross Greenwood, Nine Network Finance Editor on the Commonwealth... Channel 9, Melbourne, Today, Ben Fordham, Georgie Gardner, Sylvia Jeffreys & Tim Gilbert 7:02 AM Duration: 1 min 56 secs ASR AUD 58,528 National Australia Industry Super Australia - Radio & TV ID: X Interview with Ross Greenwood, Nine Network Finance Editor on the Commonwealth Bank Data Breach. Greenwood says it is not good for the Commonwealth Bank, and the real issue here now is why were the customers not told, as a lot of the information coming out of the Royal Commission is about what right the people have, especially about their own information. Greenwood notes on the new laws by the Government in March, which states that any company with an annual turnover of more than $3m must compulsorily and immediately report any data breaches. Greenwood says the size of the breach is significant, with 19.8m accounts and 12m customers. Greenwood says the bank will recover the trust of customers but it takes time, adding that the banks and big organisations should win trust. Greenwood says the other big fundamental problem is that all starts at the top. Greenwood says the magnetic tapes might have been destroyed or not, but the customers have the right to know. Greenwood says data is now something that is valuable, and that is the reason why companies are going to be careful with it. 314,000 All, 136,000 MALE 16+, 170,000 FEMALE 16+ Interviewees Ross Greenwood, Nine Network Finance editor Also broadcast from the following 38 stations Channel 9 (Adelaide), Channel 9 (Brisbane), Channel 9 (Perth), Channel 9 (Sydney), Channel 9 Darwin (Darwin), GEM (Perth), GEM (Regional West Australia), Imparja Alice Springs (Alice Springs), Imparja Longreach (Longreach), Imparja Mt Isa (Mt Isa), NBN Central Coast (Gosford), NBN Coffs Harbour (Coffs Harbour), NBN Gold Coast (Gold Coast), NBN Lismore (Lismore), NBN Moree (Upper Namoi), NBN Newcastle Hunter (Newcastle), NBN Tamworth (Tamworth), NBN Taree (Taree), Southern Cross ACT (Canberra), Southern Cross Albury (Albury), Southern Cross Bundaberg (Bundaberg), Southern Cross Cairns (Cairns), Southern Cross Mackay (Mackay), Southern Cross Rockhampton (Rockhampton), Southern Cross Shepparton (Shepparton), Southern Cross Toowoomba (Toowoomba), Southern Cross Townsville (Townsville), Southern Cross Victoria Ballarat (Ballarat), Southern Cross Victoria Bendigo (Bendigo), Southern Cross Victoria Gippsland (Sale), Southern Cross Victoria Swan Hill (Swan Hill), Southern Cross Victoria Warrnambool (Warrnambool), Southern Cross Wagga Wagga (Wagga Wagga), Southern Cross Wollongong (Wollongong), Tasmania Digital Television (Hobart), West Digital Television (Albany), WIN Mildura (Mildura), WIN Orange (Orange) COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

7 Interview with ABC senior business correspondent Peter Ryan. Rowland says the... ABC News, Sydney, News Breakfast, Michael Rowland, Virginia Trioli and Paul Kennedy 7:01 AM Duration: 4 mins 15 secs ASR AUD 45,571 National Australia Industry Super Australia - Radio & TV ID: X Interview with ABC senior business correspondent Peter Ryan. Rowland says the Commonwealth Bank has admitted it lost the financial statements of nearly 20 million customers. Trioli adds it follows a scathing report earlier this week from APRA, criticism from the Federal Treasurer and revelations of questionable behaviour at the Banking Royal Commission. Ryan says it's only right for people to ask why the bank failed to notify customers, launch an investigation and inform APRA or the office of the Information Commissioner. He plays a recording in which bank spokesman Angus Sullivan can be heard defending the decision. Sullivan says there's no evidence that customer records have been compromised and that they consulted with the Privacy Commissioner. Ryan believes the bank should've taken steps to inform customers given the ASIC investigation into money laundering by the bank. He casts doubt on the bank's statement that no customer information has been affected, saying data is currently a big issue following the Facebook and Cambridge Analytica scandal. 183,000 All, 101,000 MALE 16+, 81,000 FEMALE 16+ Interviewees Angus Sullivan, Spokesman, CBA [excerpt] Peter Ryan, ABC senior business correspondent Vision CBA Also broadcast from the following 22 stations ABC (Hobart), ABC (Darwin), ABC (Sydney), ABC (Brisbane), ABC (Adelaide), ABC (Melbourne), ABC (Perth), ABC (Canberra), ABC (Regional Queensland), ABC (Regional Victoria), ABC (Regional NSW), ABC (Albany), ABC News (Melbourne), ABC News (Regional NSW), ABC News (Brisbane), ABC News (Adelaide), ABC News (Perth), ABC News (Regional Queensland), ABC News (Hobart), ABC News (Canberra), ABC News (Regional Victoria), ABC News (Regional West Australia) The Commonwealth Bank informed regulators after two magnetic tapes containing... 5AA, Adelaide, 07:00 News, Newsreader 7:01 AM Duration: 0 min 40 secs ASR AUD 554 SA Australia Industry Super Australia - Radio & TV ID: X The Commonwealth Bank informed regulators after two magnetic tapes containing financial statements of nearly 20m accounts was lost in 2016 but not the affected customers. Commonwealth Bank's Angus Sullivan says the information, which could be used in account fraud, were not compromised. 31,000 All, 15,000 MALE 16+, 16,000 FEMALE 16+ Interviewees Angus Sullivan, Commonwealth Bank Also broadcast from the following 4 stations 5AU (Port Augusta), 5CS (Port Pirie), 5MU (Murray Bridge), 5RM (Berri) COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

8 There is a new banking blunder this morning with the Commonwealth admitting losing... Channel 9, Melbourne, Today, Ben Fordham, Georgie Gardner, Sylvia Jeffreys & Tim Gilbert 7:01 AM Duration: 1 min 11 secs ASR AUD 35,823 National Australia Industry Super Australia - Radio & TV ID: X There is a new banking blunder this morning with the Commonwealth admitting losing private files from 20 m accounts. The Bank says it cannot be sure that two storage tapes were destroyed two years ago, which included customer names, addresses, account numbers, and transaction details from between 2000 and early The bank says they did not contain any PINs, passwords or information that may enable fraud. The industry regulator and the Privacy Commissioner were informed at the time but plenty of CBA customers will be asking why they were not told about it. The bank is trying to reassure customers and urging them to use their accounts as normal but has stepped up account monitoring just in case. 314,000 All, 136,000 MALE 16+, 170,000 FEMALE 16+ Interviewees Angus Sullivan, Commonwealth Bank, Also broadcast from the following 38 stations Channel 9 (Adelaide), Channel 9 (Brisbane), Channel 9 (Perth), Channel 9 (Sydney), Channel 9 Darwin (Darwin), GEM (Perth), GEM (Regional West Australia), Imparja Alice Springs (Alice Springs), Imparja Longreach (Longreach), Imparja Mt Isa (Mt Isa), NBN Central Coast (Gosford), NBN Coffs Harbour (Coffs Harbour), NBN Gold Coast (Gold Coast), NBN Lismore (Lismore), NBN Moree (Upper Namoi), NBN Newcastle Hunter (Newcastle), NBN Tamworth (Tamworth), NBN Taree (Taree), Southern Cross ACT (Canberra), Southern Cross Albury (Albury), Southern Cross Bundaberg (Bundaberg), Southern Cross Cairns (Cairns), Southern Cross Mackay (Mackay), Southern Cross Rockhampton (Rockhampton), Southern Cross Shepparton (Shepparton), Southern Cross Toowoomba (Toowoomba), Southern Cross Townsville (Townsville), Southern Cross Victoria Ballarat (Ballarat), Southern Cross Victoria Bendigo (Bendigo), Southern Cross Victoria Gippsland (Sale), Southern Cross Victoria Swan Hill (Swan Hill), Southern Cross Victoria Warrnambool (Warrnambool), Southern Cross Wagga Wagga (Wagga Wagga), Southern Cross Wollongong (Wollongong), Tasmania Digital Television (Hobart), West Digital Television (Albany), WIN Mildura (Mildura), WIN Orange (Orange) The Commonwealth Bank of Australia confirms they lost the personal financial records of... SEN, Melbourne, 07:00 News, Newsreader 7:00 AM Duration: 0 min 39 secs ASR AUD 1,501 VIC Australia Industry Super Australia - Radio & TV ID: X The Commonwealth Bank of Australia confirms they lost the personal financial records of millions of customers but the bank claims there's no evidence that customer information has been compromised following the 2016 incident. The bank informed the regulators but not its customers. Angus Sullivan, CBA, says information that could be used in account fraud was not compromised. 202,000 All, 115,000 MALE 16+, 82,000 FEMALE 16+ Interviewees Angus Sullivan, CBA Also broadcast from the following 2 stations MP (Melbourne), 3AW (Melbourne) COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

9 Interview with Tom Elliot, Radio 3AW and Jane Caro, Social Commentator. Koch says... Channel 7, Melbourne, Sunrise, David Koch, Sam Armytage, Natalie Barr, Mark Beretta Duration: 6 mins 36 secs ASR AUD 388,335 National Australia Industry Super Australia - Radio & TV ID: X :46 AM Interview with Tom Elliot, Radio 3AW and Jane Caro, Social Commentator. Koch says the CBA has admitted that it lost personal details of up to 20 million accounts. Koch notes that the CBA was holding top secret files which were meant to be destroyed by a subcontractor but they lost track of it in Angus Sullivan, Acting Group Executive, CBA, says the tapes didn't contain anything that could enable account fraud. Koch mentions that the decision not to alert customers was made after speaking and getting an agreement with the regulators. Koch says the CBA has acted on recommendations from an independent investigation to prevent this from happen again in the future. Elliot thinks that the bank should have told their customers about this immediately as named and addresses alone could be used by criminals to make fake IDs. Caro explains that the banks have to be as open and transparent as they possibly can. Koch says Tim Hammond, Perth MP, has resigned from his position as he chose his family over politics. Caro commends Hammond for being so honest. Caro states that this is a terrific thing for him to do. Elliot states that it is hard to juggle politics and family life together. Koch says a mum has gone online to detail her shock of being sent a list of expensive birthday presents for a 12yo friend of her daughter. Caro thinks this is absurd and thinks the mother of the girl who is having the party is completely insane. Elliot thinks this is outrageous. 411,000 All, 165,000 MALE 16+, 235,000 FEMALE 16+ Interviewees Angus Sullivan, Acting group executive, CBA Jane Caro, Social commentator Tom Elliot, Radio 3AW Vision CBA Also broadcast from the following 43 stations Central GTS/BKN Port Lincoln (Port Lincoln), Central GTS/BKN Port Pirie (Spencer Gulf), Channel 7 (Sydney), Channel 7 (Brisbane), Channel 7 (Adelaide), Channel 7 (Perth), GWN7 (Perth), Prime7 ACT (Canberra), Prime7 Albury (Albury), Prime7 Armidale (Armidale), Prime7 Ballarat (Ballarat), Prime7 Bendigo (Bendigo), Prime7 Coffs Harbour (Coffs Harbour), Prime7 Cooma (Cooma), Prime7 Dubbo (Dubbo), Prime7 Gippsland (Sale), Prime7 Gold Coast (Gold Coast), Prime7 Griffith (Griffith), Prime7 Mildura (Mildura), Prime7 Moree (Moree), Prime7 Newcastle (Newcastle), Prime7 North Coast (Lismore), Prime7 Orange (Orange), Prime7 Shepparton (Shepparton), Prime7 Swan Hill (Swan Hill), Prime7 Tamworth (Tamworth), Prime7 Taree (Manning River), Prime7 Wagga Wagga (Wagga Wagga), Prime7 Warrnambool (Warrnambool), Prime7 Wollongong (Wollongong), Seven Bundaberg (Bundaberg), Seven Cairns (Cairns), Seven Central (Alice Springs), Seven Mackay (Mackay), Seven Mt Isa (Mt Isa), Seven Rockhampton (Rockhampton), Seven Sunshine Coast (Sunshine Coast), Seven Toowoomba (Toowoomba), Seven Townsville (Townsville), Southern Cross Central (Alice Springs), Southern Cross Darwin (Darwin), Southern Cross GTS/BKN Broken Hill (Port Pirie), Southern Cross Tasmania (Hobart) COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

10 Regular Segment: Finance with Rachel Pupazzoni... ABC News, Sydney, News Breakfast, Michael Rowland, Virginia Trioli and Paul Kennedy 6:33 AM Duration: 3 mins 3 secs ASR AUD 32,703 National Australia Industry Super Australia - Radio & TV ID: X Regular Segment: Finance with Rachel Pupazzoni - Cambridge Analytica, the company at the centre of the Facebook data scandal, has announced it's shutting down. The company and its parent company SCL Group will being bankruptcy proceedings after losing clients and facing mounting legal fees. - AMP has been put on negative ratings notice by rating agency Standard and Poor's. The agency says revelations in the Banking Royal Commission have damaged the brand and its reputation. - The ASX is urging company boards to heed calls to act lawfully and ethically. - The Eurozone is now growing faster than the UK economy. It comes as the latter prepares to initiate Brexit. 183,000 All, 101,000 MALE 16+, 81,000 FEMALE 16+ Vision AMP, Cambridge Analytica, CBA, Facebook Also broadcast from the following 22 stations ABC (Hobart), ABC (Darwin), ABC (Sydney), ABC (Brisbane), ABC (Adelaide), ABC (Melbourne), ABC (Perth), ABC (Canberra), ABC (Regional Queensland), ABC (Regional Victoria), ABC (Regional NSW), ABC (Albany), ABC News (Melbourne), ABC News (Regional NSW), ABC News (Brisbane), ABC News (Adelaide), ABC News (Perth), ABC News (Regional Queensland), ABC News (Hobart), ABC News (Canberra), ABC News (Regional Victoria), ABC News (Regional West Australia) AMP will be on CreditWatch over scandals exposed at the Banking Royal Commission.... 5AA, Adelaide, 06:30 News, Newsreader 6:31 AM Duration: 0 min 18 secs ASR AUD 132 SA Australia Industry Super Australia - Radio & TV ID: X AMP will be on CreditWatch over scandals exposed at the Banking Royal Commission. Global ratings agency Standard and Poor's says it might downgrade AMP because its competitive position could now be at risk. 31,000 All, 15,000 MALE 16+, 16,000 FEMALE 16+ Caller Warren says Catherine Livingstone is the chair of CBA on $700,000 annually. He... 2SM, Sydney, Breakfast, Grant Goldman 6:07 AM Duration: 3 mins 18 secs ASR AUD 2,454 NSW Australia Industry Super Australia - Radio & TV ID: W Caller Warren says Catherine Livingstone is the chair of CBA on $700,000 annually. He says he read a Miranda Devine article yesterday. He says they are looking at basket cases with the CBA and AMP, 'it's an absolute disgrace,' He says Devine talks great. Goldman says he disagrees with Devine on many occasions but generally he regards her as one of the better journalists in Australia. Warren says Devine writes that parachuting more women on to boards has not led to a nirvana of more ethical, socially responsible corporation, 'you only have to look at the revelation from the banking royal commission to see how it's panned out.' He says AMP's chair Catherine Brenner resigned. He believes people after this inquiry should go to jail. He says the CEO of the Commonwealth Bank has probably gone to New Zealand. N/A All, N/A MALE 16+, N/A FEMALE 16+ Also broadcast from the following 2 stations 2EL (Orange), 2HC (Coffs Harbour) COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

11 Report by Peter Ryan. Lane says the Commonwealth Bank admitted it lost the two... ABC Radio Canberra, Canberra, Early AM, Sabra Lane 6:05 AM Duration: 3 mins 32 secs ASR AUD 31,040 National Australia Industry Super Australia - Radio & TV ID: X Report by Peter Ryan. Lane says the Commonwealth Bank admitted it lost the two magnetic tapes that contained the financial statements of nearly 20m accounts in 2016, and they've only just confessed the 'data breach.' She adds the bank had the tapes scheduled for destruction, but they can't account for the tapes and assumes they've been destroyed. Lane notes the bank said there's no evidence the customers' information was compromised, but it's pretty embarrassing. Ryan mentions they say the monitoring of the accounts by the CBA confirms customers don't need to take any action. He says it's a major concern and they will be asked why they kept the customers in the dark for so long. He notes the CBA said it informed the Australian Information Commissioner, the Australian Prudential Regulation Authority, and the banking regulator about the incident and they've provided a briefing about it as a result of an investigation. Ryan says the decision was made and the CBA says in a statement not inform customers in light of those investigations and monitoring that was in place, and they were given further advice they didn't have to take any further action. He notes they've seen in the past, in relation to the allegations about the bank allegedly breaching anti-money laundering laws on almost 54,000 occasions. He adds the corporate regulator, ASIC, ended up launching an independent investigation into continuous disclosure, and there are concerns shareholders should've known about the particular issue. Ryan notes the report from APRA said the Commonwealth Bank was complacent, the board wasn't expecting appropriate accountability, and customers were being taken for granted. He says CEO Matt Comyn, who replaced Ian Narev, has pledged to make positive changes. 177,400 All, 90,600 MALE 16+, 82,800 FEMALE 16+ Also broadcast from the following 40 stations ABC Alice Springs (Alice Springs), ABC Broken Hill (Broken Hill), ABC Capricornia (Rockhampton), ABC Central Coast (Erina), ABC Central Victoria (Bendigo), ABC Central West NSW (Orange), ABC Coffs Coast (Coffs Harbour), ABC Esperance (Esperance), ABC Far North (Cairns), ABC Gippsland (Sale), ABC Goldfields WA (Kalgoorlie), ABC Goulburn Murray (Wodonga), ABC Great Southern (Albany), ABC Great Southern WA (Wagin), ABC Illawarra (Wollongong), ABC Kimberley (Broome), ABC Midwest and Wheatbelt (Geraldton), ABC Mildura - Swan Hill (Mildura), ABC New England North West (Tamworth), ABC Newcastle (Newcastle), ABC North Coast NSW (Lismore), ABC North Queensland (Townsville), ABC North West Qld (Mt Isa), ABC Radio Adelaide (Adelaide), ABC Radio Brisbane (Brisbane), ABC Radio Darwin (Darwin), ABC Radio Hobart (Hobart), ABC Radio Melbourne (Melbourne), ABC Radio Perth (Perth), ABC Radio Sydney (Sydney), ABC Riverina (Wagga Wagga), ABC Shepparton (Shepparton), ABC South East NSW (Bega), ABC South East SA (Mt Gambier), ABC South Western Victoria (Warrnambool), ABC Tropical North (Mackay), ABC Upper Hunter (Muswellbrook), ABC Western Plains NSW (Dubbo), ABC Western Queensland (Longreach), ABC Wide Bay (Bundaberg) COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

12 The Commonwealth Bank has admitted it lost the financial statements of nearly 20 million... ABC News, Sydney, News Breakfast, Michael Rowland, Virginia Trioli and Paul Kennedy 6:01 AM Duration: 3 mins 42 secs ASR AUD 19,945 National Australia Industry Super Australia - Radio & TV ID: X The Commonwealth Bank has admitted it lost the financial statements of nearly 20 million customers. It follows a scathing report earlier this week from APRA, criticism from the Treasurer and revelations of questionable behaviour at the Banking Royal Commission. It's understood the fiasco happened in 2016 when the bank commissioned company Fuji Xerox to destroy the records. The company then lost track of what it had done with two magnetic drives. The bank's Angus Sullivan has released a statement saying there's no evidence any customer records have been compromised. He says the decision not to inform customers was made in consultation with the Privacy Commissioner. 83,000 All, 50,000 MALE 16+, 30,000 FEMALE 16+ Interviewees Angus Sullivan, Spokesman, CBA Vision CBA Also broadcast from the following 22 stations ABC (Hobart), ABC (Darwin), ABC (Sydney), ABC (Brisbane), ABC (Adelaide), ABC (Melbourne), ABC (Perth), ABC (Canberra), ABC (Regional Queensland), ABC (Regional Victoria), ABC (Regional NSW), ABC (Albany), ABC News (Melbourne), ABC News (Regional NSW), ABC News (Brisbane), ABC News (Adelaide), ABC News (Perth), ABC News (Regional Queensland), ABC News (Hobart), ABC News (Canberra), ABC News (Regional Victoria), ABC News (Regional West Australia) Parsons says there's a newspaper story about benefit cheats. She explains almost 2, ABC Radio Melbourne, Melbourne, Breakfast, Jacinta Parsons and Sami Shah 5:55 AM Duration: 3 mins 8 secs ASR AUD 2,071 VIC Australia Industry Super Australia - Radio & TV ID: X Parsons says there's a newspaper story about benefit cheats. She explains almost 2,000 Australians are dobbing on who they believe to be welfare cheats every week. Shah says The Herald Sun reports 500,000 people over the past five years have delivered tip-offs about neighbours and colleagues. He mentions people are having suspicions that some are doing a scam on Centrelink. He says there's a lot happening in the Royal Commission with the banks. He states people who have done exposes were prosecuted. Shah notes in some parts of Government, a person could be prosecuted for revealing events happening under government rule. 28,000 All, 12,000 MALE 16+, 15,000 FEMALE 16+ AMP will be on CreditWatch over scandals exposed at the Royal Commission into... 4BC, Brisbane, 05:30 News, Newsreader 5:31 AM Duration: 0 min 20 secs ASR AUD 245 QLD Australia Industry Super Australia - Radio & TV ID: X AMP will be on CreditWatch over scandals exposed at the Royal Commission into Banking. Standard and Poor's says it might downgrade AMP because its competitive position could now be at risk. 19,000 All, 11,000 MALE 16+, 8,000 FEMALE 16+ Also broadcast from the following 1 station Radio 4KZ (Innisfail) COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

13 Murray tapped for AMP role The Australian, Australia, Business News, Will Glasgow Christine Lacy Page words ASR AUD 2,950 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 280 word(s), ~1 min 94,448 CIRCULATION Lender sharing the royal commission pain by saying 'no' to more mortgage applicants The Australian, Australia, Business News, James Kirby Page words ASR AUD 4,486 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 528 word(s), ~2 mins 94,448 CIRCULATION Healthscope shareholders expected to BGH takeover The Australian, Australia, Business News, Bridget Carter And Scott Murdoch Page words ASR AUD 18,309 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 709 word(s), ~2 mins 94,448 CIRCULATION ASX council pushes for women on boards The Australian, Australia, Business News, John Durie Page words ASR AUD 3,557 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 368 word(s), ~1 min 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

14 Woeful watchdogs did little to help The Australian, Australia, Business News, Richard Gluyas Page words ASR AUD 11,115 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 852 word(s), ~3 mins 94,448 CIRCULATION Pressure on loans as banks get tough The Australian, Australia, Business News, Sarah-Jane Tasker Robyn Ironside Page words ASR AUD 4,628 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 491 word(s), ~1 min 94,448 CIRCULATION Our pick free to air Age, Melbourne, Green Guide Page words ASR AUD 25,622 Photo: Yes Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 534 word(s), ~2 mins 88,085 CIRCULATION Boards urged to curb high bank bonuses The Australian, Australia, Business News, Richard Gluyas Page words ASR AUD 8,023 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 757 word(s), ~3 mins 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

15 Hyatt name on Little's big hotel The Australian, Australia, Business News, Elizabeth Redman Page words ASR AUD 2,445 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 314 word(s), ~1 min 94,448 CIRCULATION Infrastructure building to offset residential slump The Australian, Australia, Business News, Elizabeth Redman Page words ASR AUD 3,072 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 374 word(s), ~1 min 94,448 CIRCULATION Company tax cuts lift jobs growth The Australian, Australia, General News, Adam Creighton Page words ASR AUD 10,549 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 810 word(s), ~3 mins 94,448 CIRCULATION How even greenies vote against action Age, Melbourne, Business News, Julien Vincent Page words ASR AUD 12,028 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 442 word(s), ~1 min 88,085 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

16 Banks must go beyond BEAR minimum: Byres Age, Melbourne, Business News, Clancy Yeates Page words ASR AUD 11,580 Photo: Yes Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 362 word(s), ~1 min 88,085 CIRCULATION Exodus of planners hits AMP Age, Melbourne, Business News, John Collett Page words ASR AUD 13,930 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 527 word(s), ~2 mins 88,085 CIRCULATION Truth in advertising? Age, Melbourne, Green Guide Page 4 74 words ASR AUD 1,846 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 74 word(s), <1 min 88,085 CIRCULATION Trust in our banks 'only goes so far' Adelaide Advertiser, Adelaide, Business News Page words ASR AUD 1,220 Photo: No Type: News Item Size: cm² SA Australia Industry Super Australia - Press ID: View original - Full text: 191 word(s), <1 min 112,097 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

17 Customers can't bank on financial institutions doing right thing Courier Mail, Brisbane, Business News, John Dagge Page words ASR AUD 1,897 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 246 word(s), <1 min 135,007 CIRCULATION Workers must stand up to corporate greed Courier Mail, Brisbane, General News, Paul Syvret Page words ASR AUD 8,834 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 792 word(s), ~3 mins 135,007 CIRCULATION Mal's $390m fast track Courier Mail, Brisbane, General News, Renee Viellaris Page words ASR AUD 13,295 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 511 word(s), ~2 mins 135,007 CIRCULATION Million-dollar windfall for CBA star witness The Australian, Australia, General News, Leo Shanahan Page words ASR AUD 4,284 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 485 word(s), ~1 min 94,448 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

18 Transport policy 'crunch time' as more electric cars hit the road The Australian, Australia, General News, Simon Benson Page words ASR AUD 4,810 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 590 word(s), ~2 mins 94,448 CIRCULATION Banking commission must be given more time Age, Melbourne, General News, Allan Fels Page words ASR AUD 16,951 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 653 word(s), ~2 mins 88,085 CIRCULATION New graft claims hit Leighton Age, Melbourne, General News, nick mckenzie richard baker Page words ASR AUD 21,818 Photo: No Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 733 word(s), ~2 mins 88,085 CIRCULATION AMP's largest shareholder breaks silence Age, Melbourne, Business News, Elizabeth Knight Page words ASR AUD 35,748 Photo: Yes Type: News Item Size: cm² VIC Australia Industry Super Australia - Press ID: View original - Full text: 497 word(s), ~1 min 88,085 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

19 How even greenies vote against action Sydney Morning Herald, Sydney, Business News, Julien Vincent Page words ASR AUD 16,888 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 438 word(s), ~1 min 88,634 CIRCULATION Exodus of planners hits AMP Sydney Morning Herald, Sydney, Business News, John Collett Page words ASR AUD 20,409 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 527 word(s), ~2 mins 88,634 CIRCULATION It takes time to get to the rotten core Sydney Morning Herald, Sydney, General News, Allan Fels Page words ASR AUD 22,570 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 632 word(s), ~2 mins 88,634 CIRCULATION ALP to move on business corruption as leaked records reveal building giant's multimillion-dollar kicks Sydney Morning Herald, Sydney, General News, NICK MCKENZIE AND RICHARD BAKER Page words ASR AUD 29,373 Photo: Yes Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 629 word(s), ~2 mins 88,634 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

20 Banks must go beyond BEAR minimum: Byres Sydney Morning Herald, Sydney, Business News, Clancy Yeates Page words ASR AUD 17,288 Photo: Yes Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 363 word(s), ~1 min 88,634 CIRCULATION AMP's largest shareholder breaks silence Sydney Morning Herald, Sydney, Business News, Elizabeth Knight Page words ASR AUD 52,264 Photo: Yes Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 497 word(s), ~1 min 88,634 CIRCULATION CBA has 'fallen from grace' Gympie Times, Gympie QLD, General News, John Dagge Page words ASR AUD 193 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 497 word(s), ~1 min 2,997 CIRCULATION Banker s commission News Mail, Bundaberg QLD, General News, Emma Reid Page words ASR AUD 325 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 526 word(s), ~2 mins 6,176 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

21 CBA has 'fallen from grace' Daily Mercury, Mackay QLD, General News, John Dagge Page words ASR AUD 261 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 497 word(s), ~1 min 7,738 CIRCULATION Stand up for better bank deal Hobart Mercury, Hobart, General News, Helen Kempton Page words ASR AUD 1,590 Photo: Yes Type: News Item Size: cm² TAS Australia Industry Super Australia - Press ID: View original - Full text: 219 word(s), <1 min 28,265 CIRCULATION Ethics and the banks West Australian, Perth, Letters Page words ASR AUD 1,490 Photo: No Type: Letter Size: cm² WA Australia Industry Super Australia - Press ID: View original - Full text: 173 word(s), <1 min 147,676 CIRCULATION CBA has 'fallen from grace' Gladstone Observer, Gladstone QLD, General News, John Dagge Page words ASR AUD 229 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 497 word(s), ~1 min 3,301 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

22 We've lost trust, respect Sunshine Coast Daily, Maroochydore QLD, Letters Page words ASR AUD 66 Photo: No Type: Letter Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 150 word(s), <1 min 10,046 CIRCULATION Labor is ramping up active hostility to business Australian Financial Review, Australia, Editorials Page words ASR AUD 6,250 Photo: No Type: Editorial Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 687 word(s), ~2 mins 44,635 CIRCULATION Bank regulator must stick to its knitting Australian Financial Review, Australia, Letters Page words ASR AUD 850 Photo: No Type: Letter Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 97 word(s), <1 min 44,635 CIRCULATION THE DEAL MAKER Sunshine Coast Daily, Maroochydore QLD, General News, Chloe Lyons Page words ASR AUD 1,161 Photo: Yes Type: News Item Size: 1, cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 482 word(s), ~1 min 10,046 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

23 CBA probe a service to Australia Australian Financial Review, Australia, General News, Rod Maddock Page words ASR AUD 5,805 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 801 word(s), ~3 mins 44,635 CIRCULATION Bank incentive and the client's interest do not have to clash Australian Financial Review, Australia, General News, Thomas Parry Page words ASR AUD 7,120 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 943 word(s), ~3 mins 44,635 CIRCULATION Company tax cuts lift jobs growth The Australian, Australia, Edition Changes - All-round First, Adam Creighton Page words ASR AUD 10,286 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 892 word(s), ~3 mins 94,448 CIRCULATION Good governance needs diversity Australian Financial Review, Australia, General News Page words ASR AUD 12,561 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 1222 word(s), ~4 mins 44,635 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

24 Newcastle truck freight could save $16m in tolls Australian Financial Review, Australia, Companies and Markets, Jenny Wiggins Page words ASR AUD 4,632 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 450 word(s), ~1 min 44,635 CIRCULATION Exodus of planners hits AMP Canberra Times, Canberra, Business News, John Collett Page words ASR AUD 6,378 Photo: No Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: View original - Full text: 527 word(s), ~2 mins 17,579 CIRCULATION AMP's largest shareholder breaks silence Canberra Times, Canberra, Business News, Elizabeth Knight Page words ASR AUD 16,572 Photo: Yes Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: View original - Full text: 496 word(s), ~1 min 17,579 CIRCULATION Banks must go beyond BEAR minimum: Byres Canberra Times, Canberra, Business News, Clancy Yeates Page words ASR AUD 5,328 Photo: Yes Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: View original - Full text: 363 word(s), ~1 min 17,579 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

25 EXCLUSIVE BRIDGING THE GAP Illawarra Mercury, Wollongong NSW, General News, Andrew Pearson Page words ASR AUD 6,347 Photo: Yes Type: News Item Size: 1, cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 406 word(s), ~1 min 10,806 CIRCULATION CBA loses statements of 20 million customers Adelaide Advertiser, Adelaide, Edition Changes - 3rd Edition Page words ASR AUD 1,800 Photo: No Type: News Item Size: cm² SA Australia Industry Super Australia - Press ID: View original - Full text: 279 word(s), ~1 min 112,097 CIRCULATION How even greenies vote against action Canberra Times, Canberra, Business News, Julien Vincent Page words ASR AUD 5,430 Photo: No Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: View original - Full text: 438 word(s), ~1 min 17,579 CIRCULATION Byres puts spotlight on incentives Australian Financial Review, Australia, Companies and Markets, James Eyers And Jonathan Shapiro Page words ASR AUD 5,178 Photo: No Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 759 word(s), ~3 mins 44,635 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

26 CBA report to spark bank pay overhaul Australian Financial Review, Australia, Companies and Markets, James Eyers Page words ASR AUD 9,527 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 773 word(s), ~3 mins 44,635 CIRCULATION ASK NOEL Newcastle Herald, Newcastle NSW, General News, Noel Whittaker Page words ASR AUD 3,092 Photo: Yes Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 528 word(s), ~2 mins 23,625 CIRCULATION We're auctioning the house - is timing an issue? Newcastle Herald, Newcastle NSW, General News Page words ASR AUD 1,187 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 197 word(s), <1 min 23,625 CIRCULATION Banks' financial advice news could have been worse Newcastle Herald, Newcastle NSW, General News, John Collett Page words ASR AUD 2,647 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 459 word(s), ~1 min 23,625 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

27 Wilkins has big repair job at AMP Australian Financial Review, Australia, Companies and Markets, Alice Uribe Page words ASR AUD 7,079 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 568 word(s), ~2 mins 44,635 CIRCULATION Challenger shakes off RC lash, earnings impact Australian Financial Review, Australia, Companies and Markets, Joyce Moullakis Page words ASR AUD 7,544 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 510 word(s), ~2 mins 44,635 CIRCULATION Cbus confident its Epping apartments will sell well Australian Financial Review, Australia, Property, Su-Lin Tan Page words ASR AUD 4,834 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 394 word(s), ~1 min 44,635 CIRCULATION CBA lost 20 million records Daily Telegraph, Sydney, Edition Changes - 3rd Edition Page words ASR AUD 4,347 Photo: No Type: News Item Size: cm² NSW Australia Industry Super Australia - Press ID: View original - Full text: 204 word(s), <1 min 232,067 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

28 More households seek to refinance Australian Financial Review, Australia, Property, Duncan Hughes Page words ASR AUD 9,021 Photo: Yes Type: News Item Size: cm² National Australia Industry Super Australia - Press ID: View original - Full text: 721 word(s), ~2 mins 44,635 CIRCULATION Hayne commission needs more time to reach the rotten core - plus an interim report with teeth Canberra Times, Canberra, General News, Allan Fels Page words ASR AUD 10,988 Photo: No Type: News Item Size: cm² ACT Australia Industry Super Australia - Press ID: View original - Full text: 761 word(s), ~3 mins 17,579 CIRCULATION Selection service needs clarity Launceston Examiner, Launceston TAS, Domain Page words ASR AUD 2,371 Photo: Yes Type: News Item Size: cm² TAS Australia Industry Super Australia - Press ID: View original - Full text: 435 word(s), ~1 min 17,631 CIRCULATION CBA has 'fallen from grace' News Mail, Bundaberg QLD, General News, John Dagge Page words ASR AUD 229 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 497 word(s), ~1 min 6,176 CIRCULATION COPYRIGHT For the internal research use of Mediaportal subscribers only. Not to be provided to any third party for any purpose without the express permission of Isentia. For further information contact copyright@isentia.com

29 Bundy to battle bush News Mail, Bundaberg QLD, General News, Shane Jones Page words ASR AUD 359 Photo: Yes Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 352 word(s), ~1 min 6,176 CIRCULATION CBA has 'fallen from grace' Sunshine Coast Daily, Maroochydore QLD, General News, John Dagge Page words ASR AUD 278 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 497 word(s), ~1 min 10,046 CIRCULATION CBA has 'fallen from grace' Morning Bulletin, Rockhampton QLD, General News, John Dagge Page words ASR AUD 264 Photo: No Type: News Item Size: cm² QLD Australia Industry Super Australia - Press ID: View original - Full text: 497 word(s), ~1 min 9,376 CIRCULATION COPYRIGHT This report and its contents are for the internal research use of Mediaportal subscribers only and must not be provided to any third party by any means for any purpose without the express permission of Isentia and/or the relevant copyright owner. For more information contact copyright@isentia.com DISCLAIMER Isentia makes no representations and, to the extent permitted by law, excludes all warranties in relation to the information contained in the report and is not liable for any losses, costs or expenses, resulting from any use or misuse of the report.

30 The Australian, Australia Author: Will Glasgow Christine Lacy Section: Business News Article Type: News Item Classification: National : 94,448 Page: 17 Printed size: cm² Market: National Country: Australia ASR: AUD 2,950 words: 280 Item ID: Page 1 of 1 MARGINCALL WILL GLASGOW & CHRISTINE LACY Murray tapped for AMP role Here s an exciting AMP board development: word is David Murray has been approached to join Mike Wilkins board. Australian business figures don t get much more different from Catherine Brenner than the 69-year-old Murray, a former chief executive of Commonwealth Bank from 1992 to 2005, a less scandalous iteration of its history. There s no question Murray has finance executive chops. And the former Future Fund chairman s lack of chumminess with Australia s director class is legendary. Margin Call understands Murray has been approached by Wilkins, a relatively young 60, to join the recently pummelled now $12 billion group, whose shares yesterday closed up for a third consecutive day after The Fall of Brenner. Wilkins is also on the hunt for a non-executive director to fill Brenner s spot. That recruiting assignment could blow out. Three AMP directors are asking appalled shareholders to keep their spots at next week s annual meeting: Auckland lawyer Andrew Harmos, consultant Vanessa Wallace and retailer Holly Kramer. If AMP s May 10 AGM is the bloodbath many are forecasting, interim executive chairman Wilkins could be on the hunt for Continued on Page 18 David Murray Wilkins taps Murray for AMP board role Continued from Page 17 up to four new directors, not to mention a new chief executive to replace the comprehensively executed former CEO Craig Meller. We ll wait and see if Murray is one of the cast of AMP s next act. Last night neither Murray nor AMP would comment. But if Murray is, expect him to have firm ideas about the wealth and insurance group s next chairman. Come to think of it, what s the name of that guy who ran Joe Hockey s Financial System Inquiry? He d be good. W ddi b ll

31 The Australian, Australia Author: James Kirby Section: Business News Article Type: News Item Classification: National : 94,448 Page: 21 Printed size: cm² Market: National Country: Australia ASR: AUD 4,486 words: 528 Item ID: Page 1 of 1 Lender sharing the royal commission pain by saying no to more mortgage applicants JAMES KIRBY WEALTH EDITOR Are the banks really listening? It must be infuriating for any potential home loan applicant to hear the CEO of ANZ, Shayne Elliott, telling us it will be harder to get a mortgage because of the financial services royal commission. The grim warning, delivered without a hint of irony, comes from the CEO of a bank where the instances of inappropriate advice soared from 60 to 2810 in seven years, and where a financial adviser who had been suspended was allowed to keep working for almost a year afterwards. And customers are now going to pay for the clean-up, says Elliott, who has watched his underlings being carved up in the court of public opinion but who has not himself taken the long walk of shame to face royal commissioner Kenneth Hayne. As Elliot pointed out: The impact of royal commission (on lending) will be real it is more likely we will say no when in the past on balance we would have said yes. But the point is that ANZ management said yes in the past to the wrong people again and again. Maybe it s time to stop moaning about compliance costs and, you know, get compliant. No wonder the big four banks are on the nose and no wonder financial planners are rushing for the exits to start their own independent agencies. Customers too cannot be far behind, with the regional banks and notably credit unions led by the Customer Owned Banking Association making serious efforts to grab some market share in these torrid weeks of banking interrogation. In fact, nobody wins here. While Elliott was alerting potential customers to the growing disposition of his bank to turn them away, ANZ shareholders have watched the bank share price sink over the last year to where it was in 2015, at about $27. To be fair, Elliott has recently conceded: It is now clear to me the royal commission is necessary and justified. On the red-hot issue of compliance and procedure he has also promised: We are going to be much more robust to make sure we have got everything. But between the lines you have to wonder if there is any sincere change of heart among the ruling regime at the big four banks and the major insurers as the inquiry rolls on. The next important phase of the inquiry is going to examine how banks behave in relation to small business. Once again we can expect all four big banks ANZ, Commonwealth Bank, NAB and Westpac to be prominent in these sessions, with the lingering issue of how banks dealt with struggling customers in the immediate aftermath of the GFC looming as a key test. When we get to the far end of what will surely be a litany of heart-tugging case studies where small business owners were crushed by the big banks, will the bank chiefs respond in a similar fashion? Will they conclude by warning small business their costs will go up after this expensive and embarrassing inquiry? Let s hope not. Maybe it s time to stop moaning about compliance costs and, you know, get compliant

32 The Australian, Australia Author: Bridget Carter And Scott Murdoch Section: Business News Article Type: News Item Classification: National : 94,448 Page: 18 Printed size: cm² Market: National Country: Australia ASR: AUD 18,309 words: 709 Item ID: Page 1 of 2 DATAROOM EDITED BY BRIDGET CARTER carterb@theaustralian.com.au SCOTT MURDOCH murdochs@theaustralian.com.au Healthscope shareholders expected to BGH takeover Market analysts are betting that Healthscope s shareholders will the $4.1 billion takeover bid by BGH Capital, with the expectation being that the company s board members will deliver their verdict on the offer by next week at the earliest. At the Macquarie Australia investment conference in Sydney yesterday, institutional fund managers told DataRoom they believed that taking the offer from the Ben Gray-ed private equity fund was a better option than retaining the stock and facing the risk that shares would continue to underperform. The stock has traded below the $2.10 offer price of its 2014 initial public offering for much of the past year and the expectation among market observers is that the company faces operating headwinds in the years ahead. This will particularly be the case should a Labor government be elected, which would potentially trigger higher employment costs for nurses. Compounding matters is that Healthscope s operating earnings margins are in decline, falling 2.5 per cent over 18 months, while rival Ramsay has seen margins improve in the same time frame by 3.3 per cent. Healthscope s EBITDA (earnings before interest, tax, depreciation and amortisation) margin is currently about 16 per cent, while Ramsay confirmed in a recent presentation that its Australian hospital margin was around 20 per cent. Part of the problem has been fewer patients going through the Healthscope hospitals, partly due to a change in policy by some insurers which stipulate patients will only be covered for some procedures if they are conducted in day surgeries (a cheaper option) rather than private hospitals. Some have suggested that running Healthscope is a tough role for Gordon Ballantyne, who is a former Telstra executive and could find some of the nuances of leading a healthcare business more challenging than other industries. One possibility is that the company delivers a recommendation to shareholders on the bid next week when it updates the market on its operating performance for the year to April, which some believe could be behind budget. BGH Capital offered $2.36 a share for Healthscope last week in a deal ed by 15 per cent shareholder Australian Super, which has agreed to support the offer. The offer was a 16 per cent premium to its last closing share price, but 25 per cent premium to the price of the stock before DataRoom broke the story that Healthscope was in play about a week earlier. It is widely expected that the private equity fund BGH, run by the former executives of TPG Capital, which were in charge of Australia at TPG when it previously owned Healthscope with The Carlyle Group, will sell off the company s lucrative $1.2bn property portfolio. Onlookers now believe that Healthscope s adviser, UBS, is once again revisiting the same option for the company as a defensive play before the board delivers a verdict on the approach. This comes after UBS helped consider a split for TPG and Carlyle when it floated the business the last time. Major property groups spoken to by this column say they have no intention to embark on a rival bid for the company with an operator, claiming that the Australian Super exclusivity deed, which prevents the super fund from accepting a rival offer from another consortium, makes any competing bid a challenge. But the market still appears to be betting that a higher offer will be received, with shares closing at $2.47, higher than the bid price. Last year, listed real estate trusts contemplated a bid for Healthscope with an Asian operator. The expectation by some is that regardless of whether the takeover succeeds, the property arm will be sold off.

33 The Australian, Australia Author: Bridget Carter And Scott Murdoch Section: Business News Article Type: News Item Classification: National : 94,448 Page: 18 Printed size: cm² Market: National Country: Australia ASR: AUD 18,309 words: 709 Item ID: Page 2 of 2 Healthscope Hospitals operating EBITDA and EBITDA margin $m HEALTHSCOPE HOSPITALS EBITDA MARGIN % EBITDA (LHS) (RHS) % % % % Jun 2016 Dec Jun 2017 Dec Comparison of change in Healthscope Hospitals operating EBITDA margin and Ramsay s Australian Hospitals EBITDA margin* Ramsay 327bps (+3.3%) Healthscope -186bps (-1.9%) * For the half year ending Jun 30, 2016, and the half year ending Dec 31, 2017 $ $2.47 Healthscope closed down 1 Mar Apr 2018 Source: The company, Bloomberg

34 The Australian, Australia Author: John Durie Section: Business News Article Type: News Item Classification: National : 94,448 Page: 21 Printed size: cm² Market: National Country: Australia ASR: AUD 3,557 words: 368 Item ID: Page 1 of 1 ASX council pushes for women on boards GOVERNANCE: The ASX corporate governance council has proposed a 30 per cent target for women on company boards and a wider duty for social values and ethics. The council, comprised of industry and shareholder groups, issued a discussion paper proposing a series of changes companies will need to either adopt or explain why they haven t in their annual reports. The push into social values comes as the financial services sector, accounting for 30 per cent of the value on the ASX, is in the spotlight for stealing from customers and lying to regulators. A report from APRA this week found CBA, the biggest company on the ASX, had lax standards on non-financial risks and had become arrogant. The governance council has made clear companies can no longer hide behind the shield that their duty is to maximise shareholder wealth. Instead, the company and the board must accommodate a wider interest group to maintain its social licence to operate. The new principle to apply says a listed entity should instil and continually re-enforce a culture across the organisation of acting lawfully, ethically and in a socially responsible manner. This is the first change in the governance council s recommendations since Other changes include policies on whistleblower protections, anti-bribery, cyber theft and carbon policy. The council also wants Women appointed to ASX 200 boards Jan Feb Mar Source: Institute of Company Directors stronger controls on paid director and executive consultancies. The aim of the new standards is to set the governance standards for listed companies. ASX 200 companies now have 27 per cent female directors, up from 8.3 per cent in 2009, so the 30 per cent target is not a huge leap. But there is concern that the pace of change has slowed. The aim is to set the target to avoid a need for quotas. The guidelines are not legally enforced. The new standards detail the need for boards to be kept informed of cultural standards and behaviour in a company so they can help enforce the right values. One of the problems identified in the CBA report was that only good news was passed to management and the board but neither ensured changes were made. The new guidelines are aimed to overcome those shortfalls by underlining the wider board responsibilities. JOHN DURIE

35 The Australian, Australia Author: Richard Gluyas Section: Business News Article Type: News Item Classification: National : 94,448 Page: 21 Printed size: cm² Market: National Country: Australia ASR: AUD 11,115 words: 852 Item ID: Page 1 of 2 Woeful watchdogs did little to help FOUR PILLARS RICHARD GLUYAS It s hard to know what was worse Fair Work Commissioner Donna McKenna s extraordinary, Kafkaesque experience with the gatekeepers of the $4.6 billion financial advice industry, or the templated advice she got from celebrity adviser Sam Henderson in the first place. The financial services royal commission examined the case in detail, hearing from McKenna, Henderson and Dante de Gori, the chief executive of the Financial Planning Association which has been dealing with McKenna s still-unresolved complaint. It s only now, however, that the full, gory detail of the case have been exposed, with the royal commission releasing a brace of damning exhibits. McKenna says in her witness statement she was so concerned that others might suffer the consequences of Henderson s selfinterested advice, which in her case would have led to an immediate loss of $500,000, that she went to ASIC s office in Sydney on January 30 last year to do something about it. Her fears were not groundless Henderson had boasted to Mc- Kenna at their second meeting in December 2016 that he had about 200 clients, all of them high net worth with an average of $1 million invested through his firm Henderson Maxwell. McKenna didn t quite get the experience she expected at ASIC. At the reception desk, an attendant told her what she already knew she could make an online complaint by using the facilities further down the corridor. McKenna responded that she would very much like to speak to someone in person. She was then offered the use of a telephone, which was also down the corridor. McKenna located the telephone, dialled a number and talked to an ASIC employee while she was in the ASIC building. After acknowledging she had not implemented Henderson s advice and had therefore not suffered financially, the suggested course of action, again, was an online complaint that could be referred to ASIC s fraud and misconduct branch. Perhaps in frustration, Mc- Kenna didn t take up the option. The complaint process with the FPA hasn t been much better. McKenna s core grievance is that Henderson botched his advice by recommending a selfmanaged super fund, seeded by the early withdrawal of her lowcost super from an industry fund. That move alone accessing the funds before turning 58 would have cost McKenna $500,000. In their third and final meeting on January 10 last year, Henderson blamed his paraplanners, who had been asked to check and double check her super investment. The commission also heard that Henderson s employee had impersonated McKenna a number of times in telephone calls to her super fund, and that Henderson had not researched any other funds that might have been appropriate. Further, the SMSF would be managed by Henderson, and shares and cash held by Mc- Kenna would be managed by Henderson Maxwell. Henderson s statement of advice to McKenna showed a plan preparation fee of $4950, a $1980 fee to set up the Henderson Maxwell-managed account, brokerage fees of $4105, and an ongoing fee of $14,642 for investment management services. While the Henderson Maxwell chief executive later offered his apologies and a refund of his advice fees when McKenna pointed out the disastrous implications of his shoddy advice, the damage had been done. On February 1 last year, two days after McKenna s inconclusive visit to ASIC, Henderson penned a profuse apology in a two-page letter. Your anger and frustration are quite clear and present in your expression and you ve clearly exercised your (legal) vocational skills to express your dismay, he said. Henderson said it was an isolated incident and a direct result of his extremely full workload (and family commitments of being a single dad with two young kids). The advice, he said, wasn t complete, and the research undertaken was admittedly inaccurate until I verified it after your feed. The experience had profoundly affected him. Henderson said he d reduced his commitments, would never again use the word draft in his advice to clients, and was now using a strategy document and follow-up to confirm a client s financial position. He wasn t so accommodating in his dealings with the FPA, describing McKenna as aggressive and nitpicking after she took her complaint to the professional body on March 6 last year. According to senior counsel assisting the royal commission Rowena Orr, Henderson told de Gori that he was very disappointed with the process and the FPA s treatment of members over a seemingly minor complaint. There has still been no resolution of McKenna s complaint by the FPA. When a negotiated agreement was submitted to the independent

36 The Australian, Australia Author: Richard Gluyas Section: Business News Article Type: News Item Classification: National : 94,448 Page: 21 Printed size: cm² Market: National Country: Australia ASR: AUD 11,115 words: 852 Item ID: Page 2 of 2 disciplinary body connected with the FPA, the chair proposed an extra sanction that would ban Henderson from public media appearances for 12 months. Henderson asked for some changes and then withdrew his previous acceptance of the findings against him. McKenna concludes in his witness statement that Henderson prioritised his own interests ahead of her own, only recommending the firm s products and services in which he had an interest. Moreover, (a Henderson Maxwell employee) impersonated me... and Mr Henderson is recorded thanking her for doing that, she says. gluyasr@theaustralian.com.au AAP Adviser Sam Henderson described Donna McKenna (inset) as aggressive and nitpicking

37 The Australian, Australia Author: Sarah-Jane Tasker Robyn Ironside Section: Business News Article Type: News Item Classification: National : 94,448 Page: 21 Printed size: cm² Market: National Country: Australia ASR: AUD 4,628 words: 491 Item ID: Page 1 of 1 Pressure on loans as banks get tough SARAH-JANE TASKER ROBYN IRONSIDE CREDIT Australians are finding it harder to get home loans, with brokers warning banks are further tightening lending criteria in the wake of the banking royal commission. The warning follows comments by Reserve Bank governor Philip Lowe, who said in a speech on Tuesday that it could become tougher for households to secure home loans and borrowing costs might rise as a result of the poor banking behaviour exposed at the Hayne royal commission. It is possible that lending standards in Australia will be tightened further in the context of the current high level of public scrutiny, Dr Lowe said. Australia s biggest banks had already tightened lending standards in recent years, clamping down on interest-only mortgages and loans with high loan-to-valuation ratios to comply with restrictions imposed by regulators. Morgan Stanley s loan tracker shows that investor mortgage growth slowed to about 5 per cent in March and it expects further pressure from new debt-to-income limits and more focus on responsible lending. David Bailey, chief executive of the Australian Finance Group the nation s largest broker network agreed with Mr Lowe s comments, adding that there was now closer scrutiny by regulators and a new understanding of household debt levels. Certain lenders are starting to understand that rather than rely on a standard benchmark, they need to also now understand a customer s discretionary spend, Mr Bailey said. Ultimately by that nature we will see a greater understanding of a customer s day-to-day expenses rather than a wholesale benchmark. The Mortgage Group s David Seaman said it was getting tougher for people to get loans. If you re on an income of $65,000 the only way you ll get a loan is if you have no credit card, no debt whatsoever, Mr Seaman said. There s good and bad things about that. My advice to clients would be get rid of any debt. Mr Seaman added that he was concerned the royal commission would lead to even more regulation of the lending industry. You can t have the banking industry scrutinised in the way it is without having a negative effect on the economy, he said. Scott Butler, a Toowoombabased mortgage broker with Edge Lending Solutions, said lending conditions had tightened in the past three weeks. Previously lenders would take a baseline level and say if you re a family with two children we expect you to spend $3600 a month on base living costs and anything left over of that could go to servicing debts, he said. First-home-buyer specialist mortgage broker Will Unkles of 40 Forty Finance said while it was too early to determine the full impact of tightening lending conditions, there were early signs the market was preparing for the change. He said borrowers no longer borrowed as much as they could to enter the market. V1 - AUSE01Z01MA If you re on an income of $65,000, the only way you ll get a loan is if you have no credit card, no debt whatsoever. DAVID SEAMAN, MORTGAGE GROUP

38 Age, Melbourne Section: Green Guide Article Type: News Item Classification: Capital City Daily : 88,085 Page: 10 Printed size: cm² Market: VIC Country: Australia ASR: AUD 25,622 words: 534 Item ID: Page 1 of 2 our pick free to air Bad Banks SBS, Tuesday, 10.30pm The title of this German thriller is a little understated given its excoriating portrayal of the financial sector perhaps something has been lost in translation but it s certainly timely as the Royal Commission into Misconduct in the Banking Industry plays out locally. Bad Banks is set mostly in Luxembourg and Germany, but its relevance is global. It follows a young and successful investment banker, Jana Liekam (acclaimed young German actor Paula Beer), who finds herself unceremoniously fired from Luxembourg s prestigious Credit International Financial Group. But not for bad performance: Leikam is a rising star but she made the critical error of showing up her arrogant, cokeaddicted boss, Luc Jacoby (Marc Limpach), in front of clients. And Jacoby just happens to be the boss son. Jana seems to have an ally, though, in department head Christelle (Desiree Nosbusch), who lands her a potential dream gig at a rival firm in Frankfurt. This means Jana will need to leave her partner Noah (Jeff Wilbusch) and his young daughter behind, but as well as a career boost, it will stick it to her former employers; she s tasked with beating the colleague who had her fired to the endgame of a project. But Christelle s motives are not as they seem she s not giving a sister a helping hand in the maledominated world; things are more nuanced than that. In Frankfurt, Jana instantly impresses her boorish new boss Gabriel Fenger (Barry Atsma) who admits he doesn t really understand the complex world of global finance because nobody really does ), but she s still stuck in another boys club. On a night out with her team, there s some tense bonding with the only other female colleague, who sums up the gender differences in the industry. Women don t work together or form groups they don t go to brothels together. We d rather pretend we hate each other and destroy each other. The job itself seems promising until Jana realises that Christelle is no feminist role model trying to help her smash glass ceilings, but is in fact, just another morally bankrupt player who expects inside information in exchange. While Jana isn t averse to using inside information, she s torn between her new employer and what seems tantamount to blackmail from Christelle. Given the other goings on among her employers, it s just another day at the office, really; nobody in Bad Banks has an entirely clear conscience. While initially it seemswideeyed Jana will be destroyed by the greed and sexism of her industry the coldness of which is echoed in the muted colours and icy electronic soundtrack it becomes clear she s as hungry for power and success as those manipulating her. But can she play the game without it breaking her? While there s lots of finance jargon and business speak, an understanding of banking isn t necessary to follow Jana s journey (even after four episodes I still don t understand what a catastrophe bond actually does). Bad Banks is a universal story of greed, power and manipulation. KN

39 Age, Melbourne Section: Green Guide Article Type: News Item Classification: Capital City Daily : 88,085 Page: 10 Printed size: cm² Market: VIC Country: Australia ASR: AUD 25,622 words: 534 Item ID: Page 2 of 2 Paula Beer plays a successful young investment banker in Bad Banks. REVIEWS BY: Doug Anderson, Debi Enker, Melinda Houston, Craig Mathieson, Scott Murray, Brad Newsome, Kylie Northover, Ben Pobjie, Louise Rugendyke

40 The Australian, Australia Author: Richard Gluyas Section: Business News Article Type: News Item Classification: National : 94,448 Page: 17 Printed size: cm² Market: National Country: Australia ASR: AUD 8,023 words: 757 Item ID: Page 1 of 2 DIRECTORS MUST BE MORE ENGAGED Boards urged to curb high bank bonuses RICHARD GLUYAS GOVERNANCE A key adviser to the nation s big institutional investors has urged financial services boards to become more active on remuneration issues, exercising their discretion to slash bonuses and impose penalties for poor corporate behaviour. The call was ed by the nation s leading superannuation body. In the wake of Commonwealth Bank chief executive Matt Comyn s move on Tuesday to give up a $2.2 million bonus this year, Ownership Matters principal Dean Paatsch said the fundamental issue was the huge size of short-term incentive payments to financial services executives. The payments also failed to take account of long-term financial risks. The solution is to have more engaged directors who can say no and cut bonuses whenever they see good reason for it, Mr Paatsch said. Louise Davidson, chief executive of the Australian Council of Superannuation Investors which has 38 members with $2.2 trillion under management said she was open to a debate on whether short-term bonuses should be phased out, given that sound risk management was a long-term discipline. However, Ms Davidson said bonuses could play a helpful role in encouraging executives to concentrate on non-financial risks in the business, such as culture. We encourage companies to come up with new remuneration structures, but we want them to explain what they are trying to achieve and how they link to the strategy, Ms Davidson said. Mr Comyn s action followed a damning report commissioned by the prudential regulator on CBA s culture and risk frameworks following a sequence of scandals, particularly last year s Federal Court allegations by Austrac of multiple breaches of anti-moneylaundering legislation. The Australian Prudential Regulation Authority imposed a $1 billion capital penalty and a court-enforceable agreement to implement 35 changes recommended by a panel of three advisers headed by former APRA chairman John Laker. The panel found that CBA s run of record profits had led to a dulling of senses within the board to growing non-financial risks. Citi said in a report that the extent of the changes required by the regulator would translate to a multi-year program at a likely cost of $200m. Macquarie noted that CBA would have to change its culture to be more focused on product risk and the identification and remediation of operational risk. In our view, the short-term outcome of this will likely be in the form of lower pre-provision profit growth as the remedial plan is likely to have implications on both revenue and expenses, Macquarie said. APRA has required boards of the nation s biggest financial institutions to review and endorse assessments of how they measure up against the CBA report. The National Australia Bank board met yesterday ahead of today s interim result and is understood to have kickstarted the bank s self-assessment process. NAB, ANZ and Westpac all have September balance dates, with some time to elapse before they start to consider executive remuneration and any crackdown on bonuses for poor behaviour. CBA, however, has a June balance date, and has already started

41 The Australian, Australia Author: Richard Gluyas Section: Business News Article Type: News Item Classification: National : 94,448 Page: 17 Printed size: cm² Market: National Country: Australia ASR: AUD 8,023 words: 757 Item ID: Page 2 of 2 the 2018 remuneration cycle. Further cuts are now expected, following Mr Comyn s example. This is the second consecutive year that the new chief executive s variable remuneration has been slashed to zero. In August last year, when Ian Narev was chief executive and Mr Comyn was the bank s retail boss, CBA chair Catherine Livingstone enforced a no short-term bonus policy for the 2017 financial year in the wake of the Austrac scandal. Fees for non-executive directors were also cut by 20 per cent for the current year. CBA s senior management team, which Mr Comyn is seeking to replenish with five new appointments, is not the only major bank team to have recently suffered financial consequences for poor institutional behaviour. NAB chief customer officer consumer and wealth Andrew Hagger told the royal commission last month that senior executive accountability for the beneficial nominations issue, where advisers failed to correctly witness beneficiary nomination forms, had ranged from a $60,000 cut in his Continued on Page 21 $ $73.46 CBA closed up Source: Bloomberg Directors urged to curb bonuses Continued from Page 17 own bonus to full removal for other executives. ANZ and Westpac yesterday declined to identify any execu- tives who had already had their bonuses cut as a result of issues examined in the royal commission. An ANZ spokeswoman said: Behaviour and values are an important part of our performance review process and, where any of our people fail to meet our standards, this will flow through to their remuneration. A Westpac spokesman said the bank withheld a large amount of short-term remuneration for a period. There are consequences around behaviour.

42 The Australian, Australia Author: Elizabeth Redman Section: Business News Article Type: News Item Classification: National : 94,448 Page: 23 Printed size: cm² Market: National Country: Australia ASR: AUD 2,445 words: 314 Item ID: Page 1 of 1 Hyatt name on Little s big hotel ELIZABETH REDMAN HOSPITALITY Rich lister developer Paul Little has struck a deal with Hyatt Hotels for his $150 million hotel project at the western end of the Melbourne CBD. The 280-room recently approved hotel will operate under the Hyatt Centric brand, the first in Melbourne and only the second in Australia. Little Projects expects the Architectus-designed hotel to open in It will include a restaurant and rooftop bar with views across Port Phillip Bay. Mr Little is pushing ahead with developments outside the high-rise apartment sector, working on a pipeline of more than $500m. He last year expressed caution about new multi-unit developments and is now focusing on the CBD hotel as well as resortstyle apartments on the Gold Coast, a private jet terminal and student accommodation. We are extremely excited to be working with Hyatt Hotels on this project, Mr Little said. To collaborate with one of the finest hotel brands in the world is an exciting step into the next phase of Little Projects. The hotel at 9-27 Downie Street, off Flinders Lane in the southwestern corner of the CBD, will be near Southern Cross train station, the Docklands precinct and Crown casino. The group bought the development site for $28.6m last year from nightclub owner Peter Iwaniuk, public records show. Mr Little expects to see a renaissance in this corner of the city, with major developments nearby including Lendlease s mixed-use Melbourne Quarter, Cbus Property s Collins Arch and entrepreneur Shesh Ghale s planned restoration of the former Sir Charles Hotham Hotel. The location is ideal. Guests will be able to easily explore everything Melbourne has to offer, from shopping and dining, to the casino and Southbank precinct, Mr Little said. We are confident the southern end of the CBD will see significant regeneration in the coming years. Architectus Melbourne managing principal Matthew Smith said the design drew on historic masonry buildings in the area.

43 The Australian, Australia Author: Elizabeth Redman Section: Business News Article Type: News Item Classification: National : 94,448 Page: 23 Printed size: cm² Market: National Country: Australia ASR: AUD 3,072 words: 374 Item ID: Page 1 of 1 Infrastructure building to offset residential slump ELIZABETH REDMAN PROJECTS Clamps on bank lending and taxes on foreign buyers are putting pressure on the apartment building boom, with the value of residential construction tipped to fall in coming years. But government-funded infrastructure projects could pick up the slack, while growth is also expected in non-residential building projects such as offices or education and healthcare assets. The projections from the Australian Construction Industry Forum follow a period of strong residential supply that is now expected to ease, particularly in Melbourne, which has seen a wave of new apartment towers. The value of residential building work completed nationally in was $101 billion. The figure is expected to fall to $97bn this year and $93bn in , according to the ACIF forecasts. The slightly softer outlook is not stopping some developers, with Cbus Property revealing plans for a $500 million, 463- apartment mixed-use development in Epping on Sydney s north shore to be called The Langston. The Australian residential building boom is definitely coming off, ACIF head forecaster Kerry Barwise told The Australian. It s already coming off in Perth and actually it bottomed out in places like Hobart about two years ago. Melbourne and Victoria has been defying gravity for a little while, but we think that it will eventually soften here as well. The surge in supply had outpaced growth in demand for a time, particularly in apartments, he said, worrying the Reserve Bank and the government. Measures to reduce demand including clamps on lending to mum-and-dad investors, stricter lending to property developers and taxes on foreign buyers were having an effect, he said. We re going to see that come through in the pipeline over this year and next year, and what we re seeing is really just a correction in the market, trimming off overexuberance in some sectors. By contrast, the ACIF expects infrastructure construction worth $54bn last year to rise to $59bn this year and $62bn in the next on the of government spending on transport projects. Non-residential building is also tipped to rise, from $37bn last year to $42bn this year and $43bn next year. As employment picks up in sectors such as education, health, aged care and tourism, a new wave of buildings would be needed to support the economic shift.

44 The Australian, Australia Author: Adam Creighton Section: General News Article Type: News Item Classification: National : 94,448 Page: 1 Printed size: cm² Market: National Country: Australia ASR: AUD 10,549 words: 810 Item ID: Page 1 of 3 LANDMARK STUDY REVEALS ECONOMIC GAINS Company tax cuts lift jobs growth 2018 FEDERAL BUDGET EXCLUSIVE ADAM CREIGHTON ECONOMICS CORRESPONDENT Businesses that received the first wave of the Coalition government s company tax cuts created jobs 24 per cent faster than those who missed out, according to a landmark study that boosts the case for extending the cut to all companies. Ahead of a federal budget expected to feature further tax changes, analysis of the financial decisions of more than 69,000 businesses found those that enjoyed a 1.5 percentage point cut in their company tax rate in 2015, worth $2900 on average, put more than a fifth of it into hiring workers and boosting wages. A little over a quarter went towards new investment and 51 per cent was kept in reserve, according to the largest analysis of its kind undertaken by AlphaBeta on behalf of accounting firm Xero. Small Business Council chief executive Peter Strong said he was shocked more than 51 per cent didn t go towards cashflow. He said the study strengthened the government s case to cut company tax to 25 per cent for all companies. Basically half of the cut went to wages or growth or investment, Mr Strong said. That s a real sign of the economic potential of this government policy. He said bigger firms, thus far excluded from the tax cuts, were more likely to use them to hire workers and to lift wages. Cashflow isn t such an issue when you re bigger, he said. The Turnbull government s signature economic reform the phased reduction of the company tax rate by July 2026 has been blocked by Labor and the Greens in the Senate for almost two years. From July this year, the lower company tax rate, now 27.5 per cent, will extend to companies with turnover up to $50 million, the maximum under current law. The Business Council of Australia recently ramped up efforts to get crossbench senators and the public on board, calling for its members to contribute to a campaign fund. Qantas chief executive Alan Joyce yesterday confirmed the airline had contributed $200,000. We re very much supporters of the BCA and believe it has to be out there supporting actively the case for corporate tax cuts, he said. If the corporate tax rate is not competitive and investment is drained out of this country, which it will be, then all of our customers will suffer, and that will have a terrible effect on confidence. Labor has seized on the

45 The Australian, Australia Author: Adam Creighton Section: General News Article Type: News Item Classification: National : 94,448 Page: 1 Printed size: cm² Market: National Country: Australia ASR: AUD 10,549 words: 810 Item ID: Page 2 of 3 financial misconduct exposed at the financial services royal commission to argue against the tax cut, promising to reverse any cut legislated before the next election. Continued on Page 4 MORE REPORTS P4 DAVID UREN P12 EDITORIAL P13 Company tax cuts lift jobs growth, study finds Continued from Page 1 The AlphaBeta study found companies with turnover just below the $2m threshold to receive the first round of cuts increased employment by 2.6 per cent over the two years from July 2015, compared with 2.1 per cent for those with turnover just above. Andrew Charlton, director of AlphaBeta and a former senior economic adviser to Kevin Rudd in his first stint as prime minister, said there was so much heat and light about the impact of company tax cuts, but it was all based on abstract modelling and a few surveys. This is real evidence from real companies, he said. The study also found an unusually low share of businesses with turnover just above $2m and a higher share just below, suggesting restricting the scope of the corporate tax cuts had had perverse consequences for business behaviour. Incorporated firms below the $2m threshold increased their employment by more than unincorporated firms of a similar size, the report said. The ultimate impact of company tax cuts on dom- estic shareholders is mitigated by dividend imputation, so the effect of tax cuts may be more significant for larger businesses if their share of foreign ownership is higher. The government, which in March fell short by a handful of votes of legislating the second round of tax cuts, worth more than $30bn over a decade, is expected to keep the measure in the budget. The study found that 3 per cent of the tax cut went towards higher wages for current employees, compared with 19 per cent for hiring extra workers. This reflected the broader trend of stagnant wage growth and strong jobs growth. Dr Charlton said the modest impact on wages in the first years didn t mean wages wouldn t rise over time. A separate survey of 502 Xero customers found 34 per cent weren t aware there had been a corporate tax cut. Little data and analysis have been available up until this point on (whether) they ve actually made an impact, Xero chief executive Trent Innes said.

46 The Australian, Australia Author: Adam Creighton Section: General News Article Type: News Item Classification: National : 94,448 Page: 1 Printed size: cm² Market: National Country: Australia ASR: AUD 10,549 words: 810 Item ID: Page 3 of 3 ECONOMIC GAINS In 2015, corporate taxes were cut from 30% to 28.5% for companies with turnover below $2m The cut delivered an average benefit of about $2940 for firms close to the threshold How small businesses used the funds? Increased cash Lifted investment Hired workers Raised wages 27% 19% 3% 51% Firms taking advantage of the tax cut turnover below the threshold Frequency, % Turnover threshold Gap in the distribution suggests that some firms may have responded to the threshold by reducing their reported turnover $1m $2m $3m $4m Firm turnover Source: alphabeta

47 Age, Melbourne Author: Julien Vincent Section: Business News Article Type: News Item Classification: Capital City Daily : 88,085 Page: 23 Printed size: cm² Market: VIC Country: Australia ASR: AUD 12,028 words: 442 Item ID: Page 1 of 1 How even greenies vote against action COMMENT Julien Vincent The vast majority of Australians care about climate change and environmental protection. These issues have been prominent enough to influence the way millions of us have voted over the past decade. But while we rarely get to the ballot box, dozens of other important votes happen on climate change each and every year. These votes are made on behalf of you and me and, frustratingly, most oppose climate change action. Just ask your super fund. Our collective retirement savings give super funds significant stakes in Australian and international companies. With that comes the right to vote on matters such as the election of directors, executive remuneration, or other resolutions put forward by the board and shareholders. Yet, when opportunities arise for super funds to support greater action from companies on climate change, more often than not they vote against it on behalf of their members. When questioned over their poor voting records, super funds often claim they do a lot behind the scenes, engaging companies they own to encourage better action on climate change. That s fine, but when a company knows at the end of the day its investors will side with the board when casting their vote, that s a pretty big bargaining chip being given away. This is another big week for shareholder resolutions on climate change. On Wednesday, Rio Tinto fended off a proposal co-filed by the Australian Centre for Corporate Responsibility, Local Government Super, the Church of England Pension Board and the Seventh Swedish National Pension Fund, calling for a review of the company s memberships of lobby groups that advocate against climate change action. The Australian Council of Superannuation Investors recommended its members vote in favour of the resolution, and Cbus and HESTA voted in favour, along with US pension fund CalPERS. The resolution received 18 per cent of the vote, a significant lash from investors typically obedient towards the board. But this left the majority of investors siding with the board to oppose the resolution. It is likely that several major Australian superannuation funds will be among them. On Thursday it s the turn of Santos and QBE. Market Forces has coordinated shareholder resolutions to both companies, asking for exceptionally conservative action on climate change. The Santos resolution calls for the company to accurately measure, disclose and reduce emissions of methane. QBE are being asked to disclose the financial risks it faces from climate change, and how it plans to manage them. Voting against climate change action exposes us to its risks. How is that in our best interest? You ll have to ask your super fund. Julien Vincent is executive director of Market Forces NATAGE A023

48 Age, Melbourne Author: Clancy Yeates Section: Business News Article Type: News Item Classification: Capital City Daily : 88,085 Page: 20 Printed size: cm² Market: VIC Country: Australia ASR: AUD 11,580 words: 362 Item ID: Page 1 of 1 Banks must go beyond BEAR minimum: Byres CULTURE Clancy Yeates The powerful financial regulator is telling banks they must go beyond only doing what is required under new laws if they are to regain the community s trust and repair their battered reputations. After Tuesday s scathing report into the Commonwealth Bank s cultural problems, the Australian Prudential Regulation Authority on Wednesday reminded banks they have more work to do in showing there is accountability in the financial sector. NATAGE A020 APRA chairman Wayne Byres said laws that coming into effect from July, the Banking Executive Accountability Regime or BEAR, would help by making it much clearer where executive accountabilities lie. After Tuesday s report into CBA criticised the bank s overly complex organisational structure, Mr Byres said that organisational complexity and diffused responsibility have been at the core of many scandals in banking in recent years. Mr Byres said the most important part of the BEAR would be the requirement for banks to create accountability maps, which will set out exactly which areas of banks senior executives are responsible for. But he stressed that on its own, the BEAR was not a panacea to perceptions of a lack of accountability in the financial sector. This provides an opportunity to demonstrate to the community that accountability is actively practiced within the industry, Mr Byres said in a speech in Sydney. To that end, it is important that the BEAR is not seen as a compliance exercise, but rather a trigger to genuinely improve systems of governance, responsibility and accountability. Mr Byres said the BEAR was a strong regulatory foundation, but to fully address the community s concerns, the industry itself would need to do more. As well as the accountability maps, the BEAR will require the big banks to change how they pay their most senior executives, so that between 40 and 60 per cent of bonuses are deferred for at least four years. Senior bankers will face new obligations to act with honesty and integrity, with due skill, care and diligence, and to deal with APRA in an open and constructive way. The regulator will also get the power to disqualify senior bankers and ban them from the industry in extreme cases of misconduct. APRA chief Wayne Byres.

49 Age, Melbourne Author: John Collett Section: Business News Article Type: News Item Classification: Capital City Daily : 88,085 Page: 20 Printed size: cm² Market: VIC Country: Australia ASR: AUD 13,930 words: 527 Item ID: Page 1 of 1 FINANCE Financial advisers are quitting Exodus of planners hits AMP John Collett Embattled wealth giant AMP faces an accelerating exodus of financial planners from its network in the wake of the past fortnight s shredding of its reputation over its treatment of customers and dealings with the corporate regulator. AMP chairman Catherine Brenner, chief executive Craig Meller and chief legal counsel Brian Salter have all left the company after damaging admissions at the Hayne royal commission. Industry experts report that the turmoil has now spread beyond the boardroom and into AMP s 2760-strong adviser network, with many likely questioning their future with the wealth manager. Daniel Brammall, the president of the Independent Financial Advisers Association of Australia, said calls to the association from planners working for the big institutions since the start of the royal commission had increased five times. Calls are now running at between 20 and 25 a month, and a quarter of those are from AMP financial planners worried about reputational issues, he said. It is the owners of the small firms, such as sole owner-planners, and those with a small number of employees operating under AMP s licence who were calling to seek advice on how to go about settingup under their own licence, he said. They are considering their options... one [AMP] guy said to me that if we are ever going to go, now is the time to do it, Mr Brammall said. Rainmaker Information director of research Alex Dunnin said AMP would continue to lose financial advisers from its advice licensees as it had in the past two years lost 453, or 14 per cent, of its advisers. Indeed, the royal commission fallout may see these moves gather pace, but let s be circumspect, he said. But he said it was way too early to write off the wealth manager. AMP is by far the number one advice group in Australia, he said. Another potential problem for AMP could be in attracting the best and brightest from the new generation of planners, said Chanaka Gunasekera, an equity analyst at Morningstar. If you were a younger financial planner you would think twice about joining AMP given the media attention and widespread criticism of their conduct, he said. Peter Warnes, the head of equities research at Morningstar Financial, said attracting clients would also be more difficult though the public was likely to tar AMP and the big banks with the same brush. AMP is the main fall guy so far in the royal commission, but the cultural issues and misconduct are much wider than just AMP. People generally will be gun shy of all of them rather than just AMP, he said. AMP was placed on a negative credit watch by S&P Global Ratings on Wednesday following the admissions of misconduct in the advice business. While noting AMP s very strong business and financial position, S&P said the wealth manager s market position and operating performance could be hurt by the brand damage. We believe that the group s prospective competitive position may be at risk of weakening following the damage to its brand and reputation, it said in a statement. AMP shares closed at $4.16 yesterday, up 2.72 per cent for the day.

50 Age, Melbourne Section: Green Guide Article Type: News Item Classification: Capital City Daily : 88,085 Page: 4 Printed size: 33.00cm² Market: VIC Country: Australia ASR: AUD 1,846 words: 74 Item ID: Page 1 of 1 Truth in advertising? We might think admissions during the Royal Commission into Misconduct in the Banking Industry could have caused banks to reconsider their ads. It might have suggested the ad in which a bank mocks the bloke checking the structure of the house for an investment in a family home might be the image they want to portray, against the bloke looking at prices in the area and concerned with just investment. Rennis Witham, Williamstown

51 Adelaide Advertiser, Adelaide Section: Business News Article Type: News Item Classification: Capital City Daily : 112,097 Page: 33 Printed size: 82.00cm² Market: SA Country: Australia ASR: AUD 1,220 words: 191 Item ID: Page 1 of 1 Trust in our banks only goes so far AUSTRALIANS don t trust banks and wealth managers to do the right thing by them, the head of the nation s banking regulator has said. Australian Prudential Regulation Authority chairman Wayne Byres said while the banking and wealth management sectors were viewed as financially robust, faith in them to do the right thing by customers was taking a severe hit. The comments follow APRA issuing a damming report into the governance and culture of CBA. While the financial sector might be trusted to be safe, it is far less trusted to do the right thing, Mr Byres told a conference in Sydney yesterday. At the moment, that form of trust is taking a severe hit. That is not as fatal as it would be if an institution s financial soundness was called into serious question... it does, however, still have commercial implications, and will likely make the financial system less efficient and competitive over the longer run than it might otherwise be. Mr Byres said while things would occasionally go wrong in the nation s financial system, industry players needed to show there were consequences for poor behaviour within their institutions.

52 Courier Mail, Brisbane Author: John Dagge Section: Business News Article Type: News Item Classification: Capital City Daily : 135,007 Page: 48 Printed size: cm² Market: QLD Country: Australia ASR: AUD 1,897 words: 246 Item ID: Page 1 of 1 Customers can t bank on financial institutions doing right thing JOHN DAGGE AUSTRALIANS don t trust banks and wealth managers to do the right thing by them, the head of the banking regulator has said. Australian Prudential Regulation Authority chairman Wayne Byres said that while the banking and wealth management sectors were viewed as financially robust, faith in them to do the right thing by customers was taking a severe hit. The comments follow APRA issuing a damming report into the governance and culture of the Commonwealth Bank. While the financial sector might be trusted to be safe, it is far less trusted to do the right thing, Mr Byres told a conference in Sydney yesterday. At the moment that form of trust is taking a severe hit. That is not as fatal as it would be if an institution s financial soundness was called into serious question it does, however, still have commercial implications, and will likely make the financial system less efficient and competitive over the longer run than it might otherwise be. Mr Byres said while things would go wrong in the nation s financial system, industry players needed to show there were consequences for poor behaviour within their institutions. The community will be far more likely to maintain its trust that the sector will do the right thing if it is evident there is accountability when it does not, he said. The banking regulator s report into the CBA, released Tuesday, found a succession of bumper profits had dulled the senses of management to bad behaviour.

53 Courier Mail, Brisbane Author: Paul Syvret Section: General News Article Type: News Item Classification: Capital City Daily : 135,007 Page: 28 Printed size: cm² Market: QLD Country: Australia ASR: AUD 8,834 words: 792 Item ID: Page 1 of 2 Workers must stand up to corporate greed PAUL SYVRET REMEMBER the trade union royal commission? RThat was the inquisition Rlaunched by the Abbott Rgovernment that ultimately Rended up being a large, steaming nothing burger an $80 million honeypot for the legal profession chaired by a bloke who couldn t use a computer and only read s if they were printed out for him. Compare that damp squib to the ongoing revelations from the banking royal commission an inquiry that the Government resisted so hard and for so long you can still see the fingernail marks gouged into the bitumen outside Malcolm Turnbull s Point Piper mansion where our Prime Minister was dragged kicking and screaming towards the inevitable. Put aside for a moment the revelations of arrant bastardry and misconduct that the banking inquiry has produced to date, culminating in recommendations that the AMP face criminal charges for lying to the Australian Securities and Investments Commission, and the resignation of AMP chairwoman Catherine Brenner. What the ongoing horror show has achieved is to place the Government s planned $65 billion in corporate tax cuts about a quarter of which would go to the big banks currently under scrutiny under threat. Oddly enough it would appear the public appetite for handing about $13 billion to the very institutions which have been pillaging their customers with near impunity for years is at a rather low ebb right now. The other positive to take from the inquiry is the big banks attack on industry superannuation funds which consistently outperform commercial funds has also been blunted. They may not be perfect, but at least they don t charge dead people for nonexistent advice and actually exist to benefit members, not managers. In the wake of these rather inconvenient truths, and in the face of an electorate which is increasingly cranky about corporate thuggery and company tax minimisation, the Business Council of Australia is mobilising its forces. The BCA, of course, is the trade union for big business, a lobby group whose members pay to have their interests represented as one voice. In this regard they are no different to the CFMEU, United Voice or even my union, the MEAA, in that they have banded together as a collective for a common purpose. You ll find these unions in all spheres of Australian private enterprise: the Minerals Council, the National Farmers Federation, the National Retailer Association, the Australian Medical Association the list goes on. As for the BCA, chief executive Jennifer Westacott confirmed this week the ginger group is hitting up its membership which includes the likes of Westpac, the CBA, NAB, ANZ and AMP for $200,000 each to raise a $26 million pre-election war chest. This will be directed at countering Labor s anti-business (which translates as pro-worker) agenda, and push the case for billions of dollars in tax cuts for its members which as it stands pay an average corporate tax rate of 17 per cent. We are, Westacott (pictured) told the ABC this week, changing the way that we work, and many people have told us to do that and we have responded to that suggestion sometimes that criticism that we haven t been grassroots enough. We haven t been out in front of the modern campaigning techniques. Grassroots? I m guessing here that this doesn t mean we re going to see the chief executives of BHP, Telstra and Shell out on the hustings doorknocking the punters. Knock, knock. Hello, yes? Hi. I m from Goldman Sachs, and I want to explain to you why we need a whopping great tax cut, and not to trust that nasty Bill Shorten chap. You have got to be bloody kidding. Slam. Behind the scenes the BCA has certainly been busy, even setting up a front organisation to push its barrow in other words an astroturfing exercise. The For the Common Good facade it has established makes no reference to the BCA on its website, but was campaigning for relaxed retail trading hours in the SA election and argues that a competitive company tax rate will primarily benefit workers. This despite a recent NAB survey which found that just 8 per cent of businesses would use a tax cut to improve wages for workers, who have been struggling in recent years with the lowest wages growth ever recorded in Australia. This would be the same BCA that whines about alleged union power and the influence of true grassroots campaigners such as GetUp!. It is this corporate muscle and influence that ordinary workers are supposed to somehow bargain with to preserve and improve their conditions.

54 Courier Mail, Brisbane Author: Paul Syvret Section: General News Article Type: News Item Classification: Capital City Daily : 135,007 Page: 28 Printed size: cm² Market: QLD Country: Australia ASR: AUD 8,834 words: 792 Item ID: Page 2 of 2 So this Labour Day remember that the only effective answer to organised greed is organised labour. And join your union. paul.syvret@news.com.au Our PM was dragged g kicking and screaming towards the inevitable

55 Courier Mail, Brisbane Author: Renee Viellaris Section: General News Article Type: News Item Classification: Capital City Daily : 135,007 Page: 1 Printed size: cm² Market: QLD Country: Australia ASR: AUD 13,295 words: 511 Item ID: Page 1 of 2 Mal s $390m fast track EXCLUSIVE RENEE VIELLARIS THE Turnbull Government will today ramp up its Queensland cash splash pledging $390 million for a duplicate north coast rail line to boost commuter services and take trucks off the Bruce Highway. The pre-budget announcement takes the Government s infrastructure promises in Queensland to more than $2 billion in four weeks. REPORT P9 $390m rail pledge keeps Turnbull s push for Qld seats on track On board for Coast rail EXCLUSIVE RENEE VIELLARIS will today ramp up its infrastructure cash splash in Queensland by announcing $390 million for a duplicate north coast rail line that will take trucks off the Bruce Highway and increase passenger services. The pre-budget announcement to separate freight from passenger rail between Beerburrum and Landsborough takes Prime road and rail spend in Queensland in the past few weeks to more than $2 billion. It also lays the foundation for the potential fast rail project, which will dramatically cut passenger times from the Sunshine Coast to Brisbane. It is expected the project will create about 600 jobs. The huge injection centres on the Federal Government s plans to create jobs while improving safety and proseveral marginal seats. Michael McCormack said about 20km of rail would be duplicated, with a further 19km upgraded. Reduced travel times and greater trip reliability makes rail a more attractive option for travellers between the region and Brisbane in particular, while more parking at stations will also add to the equation, Mr McCormack said. The project, which will require funding from the State Government, was recently Australia. The State Government has pushed for the project. It is likely to mean: Replacing the Barrs Road level crossing near Glass House Mountains, with a new connection to Coonowrin Rd Replacing the Caloundra St level crossing in Landsborough with separated road over rail. Improvements to the Beerburrum Rd and Steve Irwin Way intersection at Beerburloop at Landsborough to the north. Expanding the park-andride facilities in Landsborough and Beerburrum. The Minister for Urban Infrastructure and Cities, Paul Fletcher, said the Government had moved quickly once the business case was approved. This upgrade... is big news for the Sunshine Coast and surrounding regions, Mr Fletcher said. Federal Member for Fisher be a significant economic boost to the region. fax Ted O Brien said the people of the Sunshine Coast and the broader region have been calling for governments to get on board with improving rail, and the Federal Government has listened... It is critical we invest in the rail corridor now to deal with congestion, but also plan for a future that may include fast rail to the Sunshine Coast from Brisbane in 45 minutes.

56 Courier Mail, Brisbane Author: Renee Viellaris Section: General News Article Type: News Item Classification: Capital City Daily : 135,007 Page: 1 Printed size: cm² Market: QLD Country: Australia ASR: AUD 13,295 words: 511 Item ID: Page 2 of 2 NAMBOUR WHAT IT MEANS W W W LANDSBOROUGH GLASSHOUSE MOUNTAINS BEERBURRUM W W

57 The Australian, Australia Author: Leo Shanahan Section: General News Article Type: News Item Classification: National : 94,448 Page: 1 Printed size: cm² Market: National Country: Australia ASR: AUD 4,284 words: 485 Item ID: Page 1 of 1 Million-dollar windfall for CBA star witness EXCLUSIVE LEO SHANAHAN SKY NEWS BUSINESS REPORTER Marianne Perkovic, the CBA s former head of a wealth management arm that charged fees to the dead, received a million-dollar windfall when the bank bought the financial planning business where she was previously boss. The sale of now scandalridden Count Financial to CBA in months after Ms Perkovic joined the bank allowed its former boss to make $1 million on Count shares she retained and then resume her role as boss of the financial planner with the CBA. CBA s star witness last month at the financial services royal commission was formerly head of the bank s financial planning business and is now the head of the millionaire s bank Commonwealth Private. Ms Perkovic was asked to explain to the royal commission why CBA s Count Financial collected money from thousands of people who had no financial planner, received no service and, in some instances, were dead. Count drew on a network of accountants to provide financial advice, but has been exposed as being rife with malpractice after consumer complaints and has been a major target of the royal commission. Counsel assisting the royal commission, Michael Hodge QC, accused Ms Perkovic of dissembling in her evidence to cover up the fact it took Australia s biggest bank two years to tell the corporate regulator it was ripping off customers by charging them fees for services they did not receive. Ms Perkovic was the chief executive of Count Financial from 2006 and joined the CBA at the beginning of 2010 to become general manager of distribution at Colonial First State, owned by CBA. In August 2011, CBA bought Count Financial for $373m, offering $1.40 in cash for Count shares or $1.40 worth of CBA shares. The offer represented a premium of 52.2 per cent on the adjusted closing price and was 14.6 times the company s 2011 net profit. At that time, Ms Perkovic and Continued on Page 2 MORE REPORTS P2 BUSINESS P17 JAMES KIRBY P21 $1m windfall for CBA executive Continued from Page 1 her partner were listed as owning 780,432 shares, which were worth $1.09 million at the time of the sale. They were listed as the 16th top shareholders in Count Financial at the time of the sale to CBA and while Ms Perkovic was employed at CBA. Following the sale, Ms Perkovic was made head of CBA s financial planning arm, Wealth Management Advice, which included Count Financial. In a statement to Sky News Business/The Australian, CBA said Ms Perkovic was not aware of the sale before leaving Count, and when she became aware of the sale to CBA she declared a conflict of interest and was not involved in the sale. Ms Perkovic s shareholding in Count and potential conflict of interest was known at the time, was fully disclosed at the appropriate stages and comprehensively managed under the group s policies that govern such matters, the CBA said. AAP Marianne Perkovic yesterday

58 The Australian, Australia Author: Simon Benson Section: General News Article Type: News Item Classification: National : 94,448 Page: 4 Printed size: cm² Market: National Country: Australia ASR: AUD 4,810 words: 590 Item ID: Page 1 of 1 Transport policy crunch time as more electric cars hit the road EXCLUSIVE SIMON BENSON NATIONAL AFFAIRS EDITOR The Turnbull government s chief infrastructure adviser will warn that governments are running out of time to plan for the expected rapid uptake of electric cars with the risk that major cities face a congestion crisis if new sources of road funding are not established. Infrastructure Australia chief executive Philip Davies will claim in a speech in Sydney today that the transformation in the transport sector has significant implications for the nation s energy security as well as government revenues from falling petrol excise. Mr Davies calls for the government to move quickly to a planning policy for the changes that Energy Minister Josh Frydenberg has admitted could put as many as one million electric cars on Australian roads by A lash was ignited within the Liberal partyroom when it was suggested that the electric vehicle industry would require government subsidies of up to $7000 a vehicle. Mr Frydenberg has predicted that the number of electric vehicles would grow from 4000 to 230,000 within the next seven years. Mr Davies will say governments have failed to anticipate the rapid disruption to the old infrastructure models in the transport and energy sectors, which could bring the largest transformation the transport sector has seen since the shift from steam to diesel locomotives, or even going to the move from horse and cart. Much of the transport and energy infrastructure that has served Australia well in the past faces new, untested challenges, Mr Davies will tell an energy symposium held by IA and Infrastructure Partnerships Australia. However, it is fair to say that the rate of disruption and change in these sectors has been far greater than governments have anticipated. Australian governments cannot afford to sit on their hands. Our national productivity, the resilience of our infrastructure across multiple sectors and indeed their future revenue streams, largely depend on how we respond to these challenges. Mr Davies will say the starkest example of the transformation of the energy and transport sectors is the increase uptake of electric vehicles, which will affect the ability to fund and maintain our road networks. Currently funding to build and maintain our road infrastructure is sourced from a mix of fuel excise and vehicle registration charges. Fuel excise will not apply to the use of electric vehicles, therefore, in coming years the increased uptake of electric vehicles will see a substantial reduction in revenue. Without doubt, electric vehicles can bring big benefits for society especially when energy is from renewable sources. There is a strong public policy case for governments supporting those who choose to invest in EVs. Governments can and should play an active role in making the most of the rollout of an electric vehicle fleet. But the potential benefits of EVs shouldn t come at the expense of the efficiency of transport networks, and the loss in productivity this would bring. With the right policies, these outcomes don t have to work at cross purposes. That is why governments need a joined-up approach to electric vehicle policy, alongside a transition to a user-pays road network. This should be a primary consideration of the independent study into road market reform, which the federal government has committed to undertake along with ensuring equity in regional and rural areas, Mr Davies will say. This was a key recommendation from the Australian Infrastructure Plan and it is important that it gets under way soon. Otherwise we run the risk of a serious road funding shortfall, meaning our future cities will be characterised by congestion and constraint. Davies

59 Age, Melbourne Author: Allan Fels Section: General News Article Type: News Item Classification: Capital City Daily : 88,085 Page: 18 Printed size: cm² Market: VIC Country: Australia ASR: AUD 16,951 words: 653 Item ID: Page 1 of 1 Banking commission must be given more time Allan Fels Tuesday s scathing report on the Commonwealth Bank, coming hard on the heels of the banking royal commission s shocking revelations over the past few weeks, underscores the problem facing Commissioner Kenneth Hayne right from the outset. How on earth can a one-year investigation, led by just one commissioner, deal with all that s rotten in Australia s financial services industry? The child sexual abuse royal commission, with six commissioners, took five years; the trade unions royal commission had almost two years. In both cases, the government extended the final report deadline. A similar extension for the banking royal commission is vital with one major proviso outlined NATAGE A018 below. This seems preferable to handing over a host of unfinished investigations to the government, which may not have the will, expertise, resources, and coordination capability to continue dirt-digging and devising strong responses in a timely way in an election year. Commissioner Hayne needs at least another year or two beyond February 2019 to have any hope of tackling the deep-seated ethical, structural and cultural issues revealed not just by his commission, but over the past four years by countless media reports and parliamentary inquiries. The burden of the current oneyear deadline was highlighted by the cracking pace set in the nine days of public hearings in April, covering financial advice. The Commonwealth Bank, in particular, got off very lightly. Despite a string of scandals over the past few years involving fraudulent financial planners, a morally bankrupt life insurance division and other unethical behaviour, only two Commonwealth Bank employees were grilled, mainly about fees for no service, over just six hours. Where were the executives responsible for these scandals? As Tuesday s report from the Australian Prudential Regulation Authority makes clear, the Commonwealth Bank s complacency and lack of accountability is widespread and emanates from the top down, leading to multiple regulatory breaches. This requires weeks of digging by the royal commission, not hours. The Australian Securities and Investments Commission coughed up just two witnesses last week, for a total of three hours. Only two victims of disastrous financial planning recommendations presented their stories, despite evidence that thousands of people have been ripped off. And only two planners and two industry representatives were called up, even though it s now very clear that the problems are deep and systemic. Clayton Utz, which signed off on a so-called independent report that was redrafted 25 times at AMP s request, escaped giving evidence at all, as did AMP legal counsel Brian Salter (although AMP sacked him on Monday). And while AMP has also sacked its CEO, Craig Meller, and chairman Catherine Brenner eventually resigned, neither they nor any other directors or chief executives were compelled to give evidence. The tight deadline forced a similar once-over-lightly approach to the commission s nine days of public hearings into consumer lending in March. And we can expect the same when the third round of public hearings, into small and medium business, begins on May 21. The royal commission has so far done a good job of uncovering evidence that has already had a profound effect on public thinking. But there are plenty more big institutions to delve into Macquarie, Suncorp, IOOF, to name a few and the questions the commission must grapple with, including toxic cultures, abolishing commissions, adequate compensation schemes and structural separation, are big ones. And the proviso, if the royal commission gets an extension? First and foremost, some earlier action is needed. We simply cannot wait two or three more years for the government to act. An interim report with real teeth would overcome this dilemma. We need an entirely new regulatory framework for an industry that has gone badly wrong and can t be trusted to fix itself. That s a huge job. Let s hope Commissioner Hayne can come up with some solutions soon and that he has no plans for the next few years. Allan Fels was chairman of the Australian Competition and Consumer Commission.

60 Age, Melbourne Author: nick mckenzie richard baker Section: General News Article Type: News Item Classification: Capital City Daily : 88,085 Page: 1 Printed size: cm² Market: VIC Country: Australia ASR: AUD 21,818 words: 733 Item ID: Page 1 of 2 New graft claims hit Leighton EXCLUSIVE Nick McKenzie Richard Baker Damning new evidence of corruption has emerged in Australia s worst single bribery case as Labor vows to introduce the toughest anti-graft regime ever faced by corporate Australia. Labor is set to announce that it will debar corrupt companies from bidding for government work as one of Australia s largest construction firms, Leighton Holdings, has come under further scrutiny. Labor will also ban the facilitation payment defence, which allows Australian firms to pay small, tax deductable bribes in return for routine benefits. The move comes as leaked offshore banking records obtained by The Age provide the most definitive evidence since the Leighton Holdings bribery scandal broke in 2012 that the Australian construction giant and some of its former executives engaged in serious corruption. The Leighton scandal is notable not only for the huge bribes paid and allegations the company corrupted two Iraqi oil ministers, but also for the failure of police to charge the firm (since renamed CIMIC) or a single former executive. Leighton paid up to $50 million in kicks to win a $1 billion oil pipeline contract in Iraq between 2010 and 2012 and has been under serious investigation without charges being brought. The corruption of the former CEO of Leighton Offshore, Peter Cox, is detailed in Swiss and United Arab Emirates banking records leaked this month to The Age. The records show that even after the Leighton Holdings board in Sydney had called in the federal police anti-bribery squad in November 2011 to investigate Mr Cox and other executives, Mr Cox was continuing to arrange multimillion-dollar kicks to be paid using company funds. The leaked records reveal Mr Cox, who was sacked by Leighton in late 2012, was also taking a cut of funds from the bribe cash being funnelled to high ranking Iraqi officials. Between late 2011 and September Continued Page 6 New bribe claims against Leighton From Page , Mr Cox directed a Ferraridriving Dubai middleman, Ramjee Iyer, to pay more than $1 million to offshore accounts that Mr Cox controlled. The leaked files also reveal that Leighton Offshore was running two separate bribe funds to secure the Iraq government contract. The first was managed by notorious oil industry fixer Unaoil, which was paid up to $90 million by Leighton, and the second by Mr Iyer, who plied Iraqi officials with cash and, according to a source, prostitutes on behalf of Leighton.

61 Age, Melbourne Author: nick mckenzie richard baker Section: General News Article Type: News Item Classification: Capital City Daily : 88,085 Page: 1 Printed size: cm² Market: VIC Country: Australia ASR: AUD 21,818 words: 733 Item ID: Page 2 of 2 The leaked documents reveal that Mr Iyer was on Leighton Offshore s payroll between August 2010 and August 2012, during which he received up to $43 million in funds, ostensibly for completing offshore construction work. Two other former senior Leighton executives are also named in the leaked documents. However, even though they have been investigating Leighton Offshore for almost seven years, gathering voluminous evidence of NATAGE A006 criminality, the federal police has not launched a single prosecution. The Turnbull government in December introduced legislation aimed at toughening Australia s anti-bribery regime by holding companies liable for failing to prevent kicks. It also promised a Deferred Prosecution Agreement scheme, in which companies such as Leighton could avoid court if they conceded wrongdoing and improved governance. Seizing on the fallout from the banking royal commission, Labor is set to announce plans to go much further than the government. It seems there is one justice system for ordinary Australians, and another for big business, said Labor s justice spokeswoman, Clare O Neil. Australia s anti-corporate bribery regime is ineffective, unworkable and contradictory. Despite regular media reports of criminal conduct, just two foreign bribery prosecutions have resulted in convictions under Australian law. Labor s commitment to a debarment regime is likely to be fiercely resisted by the business community because it may lead to companies being banned from winning lucrative government contracts, causing a far larger financial loss than any fine a court could issue. Such a regime would have been fatal to Leighton, which had billions of dollars of government contracts. The inability of regulators and police in Australia to act against alleged corporate misconduct and corruption has been highlighted by the banking royal commission and, in connection to Leighton, the global Unaoil corruption scandal. Unaoil s bribery on behalf of dozens of global corporate giants, exposed by The Age in 2016, has led to criminal charges and huge fines in the UK and US. In Australia, despite intensive investigations, the federal police has failed to lay any charges. The federal police has not launched a single prosecution.

62 Age, Melbourne Author: Elizabeth Knight Section: Business News Article Type: News Item Classification: Capital City Daily : 88,085 Page: 20 Printed size: cm² Market: VIC Country: Australia ASR: AUD 35,748 words: 497 Item ID: Page 1 of 2 AMP s largest shareholder breaks silence COMMENT Elizabeth Knight AMP s largest shareholder has broken its silence on the scandal-ridden Australian finance company expressing its shock and disappointment at the revelations made during the royal commission into financial services. US investment behemoth David Herro s Harris Associates holds just over 5 per of the stricken wealth giant and thought it was buying value. That, though, was before its royal commission induced implosion. This is not something we were expecting Harris Associates Portfolio Manager and Director of International Research, Justin Hance said on Wednesday from Chicago after AMP s share price slumped 25 per cent over the past three weeks. Having watched video clips from the royal commission hearing he said some things were definitely very surprising and disappointing. Harris doesn t get surprised very often. Twice in the past decade Herro has been named Morningstar s international equity manager of the year. It has been suggested that Harris, which has a history as an activist shareholder, had pushed for the removal of AMP s previous chief executive Craig Meller and its recently deposed chairman Catherine Brenner. Mr Hance said only that the investment company, which manages $187 billion in funds, was supportive of the recent departure of both Mr Meller and Ms Brenner. He said the move puts it (AMP) in a better position going forward. It s one thing to make a mistake it s another how you handle that mistake, he said. The resignations came after the royal commission uncovered numerous instances of malpractice across AMP, including misleading the regulator and customers, interfering with independent reports, producing poor financial advice, charging customers for services which weren t provided and excessive fees on legacy retail platforms. For now, Harris will stick with interim executive chairman Mike Wilkins and his team. We remain large shareholders of AMP and believe the shares at present are trading at a material discount to intrinsic value, he said. Mr Hance conceded there had been value loss and appreciated the fact that analysts have downgraded both AMP s earnings and share price targets. But he said he thinks the share price fall has been an overreaction. Deutsche Bank, for example, has cut its earnings forecast by 10 per cent for the 2020 financial year. It has a hold rating on AMP while others rate it as a sell. Harris Associates votes will be crucial to deciding whether the three directors that are up for re-election at next week s AMP annual meeting will retain their seats. Mr Hance would not comment on how Harris will vote. He said he understood why other shareholders wanted to toss out the entire board but thought this was unrealistic. Several other institutional shareholders and industry funds have indicated they will oppose the re-election of any directors and also vote against the remuneration report. Now more than ever AMP needs high calibre directors but potential candidates would not want to be tainted by the damaged AMP brand.

63 Age, Melbourne Author: Elizabeth Knight Section: Business News Article Type: News Item Classification: Capital City Daily : 88,085 Page: 20 Printed size: cm² Market: VIC Country: Australia ASR: AUD 35,748 words: 497 Item ID: Page 2 of 2 David G. Herro (left) and William C. Nygren, of Harris Associates. Photo: The New York Times

64 Sydney Morning Herald, Sydney Author: Julien Vincent Section: Business News Article Type: News Item Classification: Capital City Daily : 88,634 Page: 23 Printed size: cm² Market: NSW Country: Australia ASR: AUD 16,888 words: 438 Item ID: Page 1 of 1 How even greenies vote against action COMMENT Julien Vincent The vast majority of Australians care about climate change and environmental protection. These issues have been prominent enough to influence the way millions of us have voted over the past decade. But while we rarely get to the ballot box, dozens of other important votes happen on climate change each and every year. These votes are made on behalf of you and me and, frustratingly, most oppose climate change action. Just ask your super fund. Our collective retirement savings give super funds significant stakes in Australian and international companies. With that comes the right to vote on matters such as the election of directors, executive remuneration, or other resolutions put forward by the board and shareholders. Yet, when opportunities arise for super funds to support greater action from companies on climate change, more often than not they vote against it on behalf of their members. When questioned over their poor voting records, super funds often claim they do a lot behind the scenes, engaging companies they own to encourage better action on climate change. That s fine, but when a company knows at the end of the day its investors will side with the board when casting their vote, that s a pretty big bargaining chip being given away. This is another big week for shareholder resolutions on climate change. On Wednesday, Rio Tinto fended off a proposal co-filed by the Australian Centre for Corporate Responsibility, Local Government Super, the Church of England Pension Board and the Seventh Swedish National Pension Fund, calling for a review of the company s memberships of lobby groups that advocate against climate change action. The Australian Council of Superannuation Investors recommended its members vote in favour of the resolution, and Cbus and HESTA voted in favour, along with US pension fund CalPERS. The resolution received 18 per cent of the vote, a significant lash from investors typically obedient towards the board. But this left the majority of investors siding with the board to oppose the resolution. It is likely that several major Australian superannuation funds will be among them. On Thursday it s the turn of Santos and QBE. Market Forces has coordinated shareholder resolutions to both companies, asking for exceptionally conservative action on climate change. The Santos resolution calls for the company to accurately measure, disclose and reduce emissions of methane. QBE are being asked to disclose the financial risks it faces from climate change, and how it plans to manage them. Voting against climate change action exposes us to its risks. How is that in our best interest? You ll have to ask your super fund. Julien Vincent is executive director of Market Forces 1HERSA1 A023

65 Sydney Morning Herald, Sydney Author: John Collett Section: Business News Article Type: News Item Classification: Capital City Daily : 88,634 Page: 20 Printed size: cm² Market: NSW Country: Australia ASR: AUD 20,409 words: 527 Item ID: Page 1 of 1 FINANCE Financial advisers are quitting Exodus of planners hits AMP John Collett Embattled wealth giant AMP faces an accelerating exodus of financial planners from its network in the wake of the past fortnight s shredding of its reputation over its treatment of customers and dealings with the corporate regulator. AMP chairman Catherine Brenner, chief executive Craig Meller and chief legal counsel Brian Salter have all left the company after damaging admissions at the Hayne royal commission. Industry experts report that the turmoil has now spread beyond the boardroom and into AMP s 2760-strong adviser network, with many likely questioning their future with the wealth manager. Daniel Brammall, the president of the Independent Financial Advisers Association of Australia, said calls to the association from planners working for the big institutions since the start of the royal commission had increased five times. Calls are now running at between 20 and 25 a month, and a quarter of those are from AMP financial planners worried about reputational issues, he said. It is the owners of the small firms, such as sole owner-planners, and those with a small number of employees operating under AMP s licence who were calling to seek advice on how to go about setting- up under their own licence, he said. They are considering their options... one [AMP] guy said to me that if we are ever going to go, now is the time to do it, Mr Brammall said. Rainmaker Information director of research Alex Dunnin said AMP would continue to lose financial advisers from its advice licensees as it had in the past two years lost 453, or 14 per cent, of its advisers. Indeed, the royal commission fallout may see these moves gather pace, but let s be circumspect, he said. But he said it was way too early to write off the wealth manager. AMP is by far the number one advice group in Australia, he said. Another potential problem for AMP could be in attracting the best and brightest from the new generation of planners, said Chanaka Gunasekera, an equity analyst at Morningstar. If you were a younger financial planner you would think twice about joining AMP given the media attention and widespread criticism of their conduct, he said. Peter Warnes, the head of equities research at Morningstar Financial, said attracting clients would also be more difficult though the public was likely to tar AMP and the big banks with the same brush. AMP is the main fall guy so far in the royal commission, but the cultural issues and misconduct are much wider than just AMP. People generally will be gun shy of all of them rather than just AMP, he said. AMP was placed on a negative credit watch by S&P Global Ratings on Wednesday following the admissions of misconduct in the advice business. While noting AMP s very strong business and financial position, S&P said the wealth manager s market position and operating performance could be hurt by the brand damage. We believe that the group s prospective competitive position may be at risk of weakening following the damage to its brand and reputation, it said in a statement. AMP shares closed at $4.16 yesterday, up 2.72 per cent for the day.

66 Sydney Morning Herald, Sydney Author: Allan Fels Section: General News Article Type: News Item Classification: Capital City Daily : 88,634 Page: 19 Printed size: cm² Market: NSW Country: Australia ASR: AUD 22,570 words: 632 Item ID: Page 1 of 1 It takes time to get to the rotten core Allan Fels Tuesday s scathing report on the Commonwealth Bank, coming hard on the heels of the royal commission s revelations over the past few weeks, underscores the problem facing Commissioner Kenneth Hayne from the outset. How can a one-year investigation, led by one commissioner, deal with all that s rotten in Australia s financial services industry? The child sexual abuse royal commission, with six commissioners, took five years; the trade unions one had almost two years. In both cases, the government extended the final report deadline. A similar extension for the banking royal commission is vital. It seems preferable to handing over unfinished investigations to the government, which may not have the will, expertise, resources and co-ordination capability to dig dirt and devise strong responses in an election year. Hayne needs another year or two beyond February 2019 to tackle the ethical, structural and cultural issues revealed by his commission and recent media reports and parliamentary inquiries. The burden of the one-year deadline was highlighted by the nine days of public hearings in April, covering financial advice. CBA got off very lightly. Despite scandals over the past few years involving fraudulent financial planners, a morally bankrupt life insurance division and other unethical behaviour, only two CBA employees were grilled, mainly about fees for no service, over just six hours. Where were the top executives responsible, or the whistleblowers who brought them to light? As Tuesday s report from the Australian Prudential Regulation Authority makes clear, CBA s complacency and lack of accountability is widespread and emanates from the top down, leading to regulatory breaches. This requires weeks of digging by the commission, not hours. The Australian Securities and Investments Commission coughed up just two witnesses last week, for a total of three hours. Only two victims of disastrous financial planning recommendations presented their stories at the public hearings, despite evidence that thousands of people have been ripped off. And only two planners and two industry representatives were called up, although it s clear the problems are deep and systemic. Clayton Utz, which signed off on a so-called independent report that was redrafted 25 times at AMP s request, escaped giving evidence, as did AMP legal counsel Brian Salter (although AMP sacked him on Monday). And while AMP has also sacked CEO Craig Mellor, and chairman Catherine Brenner resigned, neither they nor any other directors or chief executives were compelled to give evidence. The deadline necessitated a onceover-lightly approach to the commission s nine days of public hearings into consumer lending in March. And we can expect the same when the third round of hearings, into small and medium business, begins on May 21. Racing through such complex issues, on a small ($75 million) budget, is disquieting. The royal commission has uncovered evidence that has had a profound effect on public thinking. But there are plenty more big institutions to check Macquarie, Suncorp, IOOF for some and questions including toxic cultures, abolishing commissions, adequate compensation schemes and structural separation are big ones. And the proviso, if the royal commission gets an extension? First, earlier action is needed. We cannot wait two or three more years for the government to act. An interim report with real teeth would overcome this. We need strong, early recommendations that go beyond higher fines. The interim report, due at the end of September, needs to address and then early next year resolve the bigger issues, before next year s federal election when politicians will be distracted. We need a new regulatory framework for an industry that has gone wrong and can t be trusted to fix itself. Let s hope Hayne can come up with solutions soon and that he has no plans for the next few years. Allan Fels was chairman of the Australian Competition and Consumer Commission from its inception in 1995 until June 2003.

67 Sydney Morning Herald, Sydney Author: NICK MCKENZIE AND RICHARD BAKER Section: General News Article Type: News Item Classification: Capital City Daily : 88,634 Page: 4 Printed size: cm² Market: NSW Country: Australia ASR: AUD 29,373 words: 629 Item ID: Page 1 of 2 ALP to move on business corruption as leaked records reveal building giant s multimillion-dollar kicks Labor is promising a much tougher anti-corruption regime, write Nick McKenzie and Richard Baker. Damning new evidence of corruption has emerged in Australia s worst single bribery case as Labor vows to introduce the toughest anti-graft regime ever faced by corporate Australia. The evidence relates to bribery and corruption in Australian construction firm Leighton Holdings. Labor is set to announce it will 1HERSA1 A004 debar corrupt companies from bidding for government work. It will also ban the facilitation payment defence that allows local firms to pay small, tax deductible bribes in return for benefits. The move comes as leaked offshore banking records obtained by the Herald provide the most definitive evidence since the Leighton Holdings bribery scandal broke in 2012 that the Australian construction giant and some of its former executives engaged in serious corruption. The Leighton scandal is notable not only for the huge bribes paid and allegations the company corrupted two Iraqi oil ministers, but also for the failure of police to charge the firm (since renamed CIMIC) or a single former executive. Leighton paid up to $50 million in kicks to win a $1 billion oil pipeline contract in Iraq between 2010 and 2012 and has been under serious investigation without charges being brought. The corruption of the former CEO of Leighton Offshore, Peter Cox, is detailed in Swiss and United Arab Emirates banking records leaked this month. The records show that even after the Leighton Holdings board in Sydney had called in the federal police anti-bribery squad in November 2011 to investigate Mr Cox and other executives, Mr Cox was arranging multimillion-dollar kicks to be paid using company funds. The records reveal Mr Cox, who was sacked by Leighton in late 2012, was also taking a cut of funds from the bribe cash being funnelled to high ranking Iraqi officials. Between late 2011 and September 2012, Mr Cox directed a Ferrari-driving Dubai middleman, Ramjee Iyer, to pay over $1 million to offshore accounts that Mr Cox controlled. The leaked files also reveal that Leighton Offshore was running two separate bribe funds to secure the Iraq government contract. The first was managed by oil industry fixer Unaoil, which was paid up to $90 million by Leighton, and the second by Mr Iyer, who plied Iraqi officials with cash and, said a source, prostitutes on behalf of Leighton. The leaked documents reveal that Mr Iyer was on Leighton Offshore s payroll between August 2010 and August 2012, during which he received up to $43 million in funds, ostensibly for completing offshore construction work. Two other former senior Leighton executives are also named in the leaked documents. However, even though they have been investigating Leighton Offshore for almost seven years, the federal police has not launched a single prosecution. The Turnbull government in December introduced legislation aimed at toughening Australia s anti-bribery regime by holding companies liable for failing to prevent kicks. It also promised a Deferred Prosecution Agreement scheme, in which companies such as Leighton could avoid court if they conceded wrongdoing and improved governance. Seizing on the fall-out from the banking royal commission, Labor will announce plans to go much further than the government. It seems there is one justice system for ordinary Australians, and another for big business, said Labor s justice spokeswoman, Clare O Neil. Australia s anti-corporate bribery regime is ineffective, unworkable and contradictory. Despite regular media reports of criminal conduct, just two foreign bribery prosecutions have resulted in convictions under Australian law. Labor believes that corporate crime is just as bad as any other kind of crime. Labor s commitment to a debarment regime is likely to be resisted by business as it may lead to companies being banned from winning lucrative government contracts, causing a far larger financial loss than any fine a court could issue. 1HERSA1 A005

68 Sydney Morning Herald, Sydney Author: NICK MCKENZIE AND RICHARD BAKER Section: General News Article Type: News Item Classification: Capital City Daily : 88,634 Page: 4 Printed size: cm² Market: NSW Country: Australia ASR: AUD 29,373 words: 629 Item ID: Page 2 of 2 Ramjee Iyer. Peter Cox.

69 Sydney Morning Herald, Sydney Author: Clancy Yeates Section: Business News Article Type: News Item Classification: Capital City Daily : 88,634 Page: 20 Printed size: cm² Market: NSW Country: Australia ASR: AUD 17,288 words: 363 Item ID: Page 1 of 1 Banks must go beyond BEAR minimum: Byres CULTURE Clancy Yeates The powerful financial regulator is telling banks they must go beyond only doing what is required under new laws if they are to regain the community s trust and repair their battered reputations. After Tuesday s scathing report into the Commonwealth Bank s cultural problems, the Australian Prudential Regulation Authority on Wednesday reminded banks they have more work to do in showing there is accountability in the financial sector. APRA chairman Wayne Byres said laws that coming into effect from July, the Banking Executive Accountability Regime or BEAR, would help by making it much clearer where executive accountabilities lie. After Tuesday s report into CBA criticised the bank s overly complex organisational structure, Mr Byres said that organisational complexity and diffused responsibility have been at the core of many scandals in banking in recent years. Mr Byres said the most important part of the BEAR would be the requirement for banks to create accountability maps, which will set out exactly which areas of banks senior executives are responsible for. But he stressed that on its own, the BEAR was not a panacea to perceptions of a lack of accountability in the financial sector. This provides an opportunity to demonstrate to the community that accountability is actively practiced within the industry, Mr Byres said in a speech in Sydney. To that end, it is important that the BEAR is not seen as a compliance exercise, but rather a trigger to genuinely improve systems of governance, responsibility and accountability. Mr Byres said the BEAR was a strong regulatory foundation, but to fully address the com- munity s concerns, the industry itself would need to do more. As well as the accountability maps, the BEAR will require the big banks to change how they pay their most senior executives, so that between 40 and 60 per cent of bonuses are deferred for at least four years. Senior bankers will face new obligations to act with honesty and integrity, with due skill, care and diligence, and to deal with APRA in an open and constructive way. The regulator will also get the power to disqualify senior bankers and ban them from the industry in extreme cases of misconduct. APRA chief Wayne Byres.

70 Sydney Morning Herald, Sydney Author: Elizabeth Knight Section: Business News Article Type: News Item Classification: Capital City Daily : 88,634 Page: 20 Printed size: cm² Market: NSW Country: Australia ASR: AUD 52,264 words: 497 Item ID: Page 1 of 2 AMP s largest shareholder breaks silence COMMENT Elizabeth Knight AMP s largest shareholder has broken its silence on the scandal-ridden Australian finance company expressing its shock and disappointment at the revelations made during the royal commission into financial services. US investment behemoth David Herro s Harris Associates holds just over 5 per of the stricken wealth giant and thought it was buying value. That, though, was before its royal commission induced implosion. This is not something we were expecting Harris Associates Portfolio Manager and Director of International Research, Justin Hance said on Wednesday from Chicago after AMP s share price slumped 25 per cent over the past three weeks. Having watched video clips from the royal commission hearing he said some things were definitely very surprising and disappointing. Harris doesn t get surprised very often. Twice in the past decade Herro has been named Morningstar s international equity manager of the year. It has been suggested that Harris, which has a history as an activist shareholder, had pushed for the removal of AMP s previous chief executive Craig Meller and its recently deposed chairman Catherine Brenner. Mr Hance said only that the investment company, which manages $187 billion in funds, was supportive of the recent departure of both Mr Meller and Ms Brenner. He said the move puts it (AMP) in a better position going forward. It s one thing to make a mistake it s another how you handle that mistake, he said. The resignations came after the royal commission uncovered numerous instances of malpractice across AMP, including misleading the regulator and customers, interfering with independent reports, producing poor financial advice, charging customers for services which weren t provided and excessive fees on legacy retail platforms. For now, Harris will stick with interim executive chairman Mike Wilkins and his team. We remain large shareholders of AMP and believe the shares at present are trading at a material discount to intrinsic value, he said. Mr Hance conceded there had been value loss and appreciated the fact that analysts have downgraded both AMP s earnings and share price targets. But he said he thinks the share price fall has been an overreaction. Deutsche Bank, for example, has cut its earnings forecast by 10 per cent for the 2020 financial year. It has a hold rating on AMP while others rate it as a sell. Harris Associates votes will be crucial to deciding whether the three directors that are up for re-election at next week s AMP annual meeting will retain their seats. Mr Hance would not comment on how Harris will vote. He said he understood why other shareholders wanted to toss out the entire board but thought this was unrealistic. Several other institutional shareholders and industry funds have indicated they will oppose the re-election of any directors and also vote against the remuneration report. Now more than ever AMP needs high calibre directors but potential candidates would not want to be tainted by the damaged AMP brand.

71 Sydney Morning Herald, Sydney Author: Elizabeth Knight Section: Business News Article Type: News Item Classification: Capital City Daily : 88,634 Page: 20 Printed size: cm² Market: NSW Country: Australia ASR: AUD 52,264 words: 497 Item ID: Page 2 of 2 David G. Herro (left) and William C. Nygren, of Harris Associates. Photo: The New York Times David G. Herro (left) and William C. Nygren, of Harris Associates. Photo: The New York Times

72 Gympie Times, Gympie QLD Author: John Dagge Section: General News Article Type: News Item Classification: Regional : 2,997 Page: 24 Printed size: cm² Market: QLD Country: Australia ASR: AUD 193 words: 497 Item ID: Page 1 of 1 CBA has fallen from grace JOHN DAGGE COMMONWEALTH Bank chair Catherine Livingstone has defended selecting an internal candidate to run the bank after the industry regulator slammed its culture as insular, complacent and indifferent to customer mistreatment. And new CBA chief Matt Comyn will forgo $2.2 million in short-term bonuses this year in the wake of the watchdog s stinging rebuke. The nation s biggest lender has also been ordered by the Australian Prudential Regulation Authority to top up its capital levels by $1 billion until it has improved its governance practices. Federal Treasurer Scott Morrison said he expected more CBA board directors and executives to resign following the release of the damning report. A number of board members and executives have already gone, he said. My understanding is there will be others who will be leaving, and that s what I expect. The banking regulator s report, released on Tuesday, found a succession of bumper profits had dulled the senses of CBA management to bad behaviour. Executives were unaccountable for poor work practices and the board did not challenge them when problems emerged. The bank was complacent, insular, did not learn from past mistakes and had a tin ear to external criticism, the report concluded, adding that CBA has fallen from grace. Its remuneration framework had little sting for senior managers who oversaw poor customer outcomes and rewarded staff for engaging in activities that did not necessarily produce good customer outcomes. Decision making processes were complex and bureaucratic and favoured collegiality and collaboration over decisiveness and effective outcomes. APRA started investigating the bank s culture and governance in August following a string of scandals including allegations it breached anti-money laundering laws more than 50,000 times. Mr Comyn, who previously ran its retail banking division, took over the top management job last month. He has spent the bulk of his career at the CBA, and the decision to appoint an internal candidate instead of signalling a fresh start by hiring an outsider surprised many. Ms Livingstone on Tuesday said the report strengthened the case for elevating Mr Comyn to the chief executive position given his hands-on knowledge of the bank. Mr Comyn had also stepped up and taken responsibility for shortcomings identified when the nation s dirty-money watchdog, the Australian Transaction Reports and Analysis Centre, last year accused it of repeatedly breaching anti-money laundering laws, Ms Livingstone said. Matt has an intimate knowledge of the bank and has demonstrated he is someone who gets things done, she said. Mr Comyn, who is still eligible to receive long-term bonuses worth up to $4 million this year, said the APRA report was clear, insightful and confronting. Both Mr Comyn and Ms Livingstone pushed at Mr Morrison s suggestion more heads needed to roll, with Mr Comyn saying there had already been departures since the report was commissioned. Ms Livingstone said the bank was in the middle of an intensive process of board renewal and it was important to balance the pace of change with the need to retain institutional memory.

73 News Mail, Bundaberg QLD Author: Emma Reid Section: General News Article Type: News Item Classification: Regional : 6,176 Page: 9 Printed size: cm² Market: QLD Country: Australia ASR: AUD 325 words: 526 Item ID: Page 1 of 2 Banker s commission CEO highlights the importance of trust EMMA REID emma.reid@news-mail.com.au ONE of Bundaberg s leading business identities says the majority of people who work for the big four banks and AMP genuinely try to do their best for their customers. In the wake of startling revelations about some of the practices at the big banks and leading financial services organisation, the NewsMail spoke with Auswide CEO Martin Barrett. Mr Barrett said he supported the Royal Commission into the Financial Services sector as it was essential people trusted banks and the financial system and its integrity. More than 300,000 customers at the banks and AMP are being refunded a combined $216 million after being charged for financial advice they never received. The revelations regarding fees for no service and the culture that somehow this was acceptable or at least acceptable to do nothing is an appalling example of poor leadership, governance and thus culture, Mr Barrett said. The recent findings regarding the big financial planning businesses of the big banks and AMP have been reprehensible. A Royal Commission is designed to find fault and to ensure corrective action. So far it has certainly done that. There is some way yet to go with the royal commission, it will continue to highlight the worst of the behaviour for some time yet. That s what it is designed to do. He said banks existed to provide products and services to customers and to make profits for their owners. However this needs to be fair and ethical, Mr Barrett said. The reality is that everyone and every business will make mistakes. The important thing is that mistakes are identified, corrected quickly and that there is a culture of fairness. He said financial advice was important. We live in a highly complex financial world that is requiring individuals to ensure their own future retirement, Mr Barrett said. I believe the challenge is broader than financial planners. The challenge stems to our education system and the lack of financial awareness the vast majority of the community have. Superannuation, taxation, savings, investment and the basics of the economy are all areas that some grounding should be provided to us through our schooling or through other education means. If nothing else this simple rule should be understood. Higher return from higher risk. In other words if you re looking for a better interest rate or higher returns on your money then, in general, this comes with a higher level of risk. If you don t understand the risk then think long and hard before you commit, including finding someone who can explain it clearly to you. He said he believed the industry needed a lift in both qualifications of financial planners and also a system that allows everyone to get financial advice at a cost appropriate to their circumstances and investment requirements. Commission-based remuneration structures should be scrapped unless safeguards can be put in place, Mr Barrett said. Unethical or incompetent behaviour should carry substantial personal cost for the advisor. I BELIEVE THE CHALLENGE IS BROADER THAN FINANCIAL PLANNERS. AUSWIDE CEO MARTIN BARRETT

74 News Mail, Bundaberg QLD Author: Emma Reid Section: General News Article Type: News Item Classification: Regional : 6,176 Page: 9 Printed size: cm² Market: QLD Country: Australia ASR: AUD 325 words: 526 Item ID: Page 2 of 2 TALKING MONEY: Auswide Bank CEO Martin Barrett said what the Royal Commission had uncovered was reprehensible.

75 Daily Mercury, Mackay QLD Author: John Dagge Section: General News Article Type: News Item Classification: Regional : 7,738 Page: 19 Printed size: cm² Market: QLD Country: Australia ASR: AUD 261 words: 497 Item ID: Page 1 of 1 CBA has fallen from grace JOHN DAGGE COMMONWEALTH Bank chair Catherine Livingstone has defended selecting an internal candidate to run the bank after the industry regulator slammed its culture as insular, complacent and indifferent to customer mistreatment. And new CBA chief Matt Comyn will forgo $2.2 million in short-term bonuses this year in the wake of the watchdog s stinging rebuke. The nation s biggest lender has also been ordered by the Australian Prudential Regulation Authority to top up its capital levels by $1 billion until it has improved its governance practices. Federal Treasurer Scott Morrison said he expected more CBA board directors and executives to resign following the release of the damning report. A number of board members and executives have already gone, he said. My understanding is there will be others who will be leaving, and that s what I expect. The banking regulator s report, released on Tuesday, found a succession of bumper profits had dulled the senses of CBA management to bad behaviour. Executives were unaccountable for poor work practices and the board did not challenge them when problems emerged. The bank was complacent, insular, did not learn from past mistakes and had a tin ear to external criticism, the report concluded, adding that CBA has fallen from grace. Its remuneration framework had little sting for senior managers who oversaw poor customer outcomes and rewarded staff for engaging in activities that did not necessarily produce good customer outcomes. Decision making processes were complex and bureaucratic and favoured collegiality and collaboration over decisiveness and effective outcomes. APRA started investigating the bank s culture and governance in August following a string of scandals including allegations it breached anti-money laundering laws more than 50,000 times. Mr Comyn, who previously ran its retail banking division, took over the top management job last month. He has spent the bulk of his career at the CBA, and the decision to appoint an internal candidate instead of signalling a fresh start by hiring an outsider surprised many. Ms Livingstone on Tuesday said the report strengthened the case for elevating Mr Comyn to the chief executive position given his hands-on knowledge of the bank. Mr Comyn had also stepped up and taken responsibility for shortcomings identified when the nation s dirty-money watchdog, the Australian Transaction Reports and Analysis Centre, last year accused it of repeatedly breaching anti-money laundering laws, Ms Livingstone said. Matt has an intimate knowledge of the bank and has demonstrated he is someone who gets things done, she said. Mr Comyn, who is still eligible to receive long-term bonuses worth up to $4 million this year, said the APRA report was clear, insightful and confronting. Both Mr Comyn and Ms Livingstone pushed at Mr Morrison s suggestion more heads needed to roll, with Mr Comyn saying there had already been departures since the report was commissioned. Ms Livingstone said the bank was in the middle of an intensive process of board renewal and it was important to balance the pace of change with the need to retain institutional memory.

76 Hobart Mercury, Hobart Author: Helen Kempton Section: General News Article Type: News Item Classification: Capital City Daily : 28,265 Page: 14 Printed size: cm² Market: TAS Country: Australia ASR: AUD 1,590 words: 219 Item ID: Page 1 of 1 Stand up for better bank deal HELEN KEMPTON A TASMANIAN financial adviser and author says the fallout from the royal commission into banking showed the nation s big institutions were focused on what products they could sell, not the best interests of their customers. Stuart Barry, of Hobart, said bank customers needed to be a squeaky wheel and ask financial institutions what they were prepared to do to keep their business. Be the squeaky wheel, tell your bank you are shopping around for better deals, Mr Barry said. It is very rare for customers to leave a bank. You will be surprised how you can benefit if you indicate you are prepared to move. Mr Barry said big financial institutions had been exposed for focusing on what products they could sell, not the interests of customers. The job of a bank teller used to be to balance the ledger. Now it is to sell products, anything from insurance, traveller s cheques, credit card and superannuation, Mr Barry said. That pressure is coming from the top down. It is not just a few bad apples but how the system now operates. I have not been surprised by the findings but have been shocked by the extent the big four banks and AMP have been lying to regulators. helen.kempton@news.com.au BANK FALLOUT: Financial adviser, Stuart Barry, of Hobart. Picture: NIKKI DAVIS-JONES

77 West Australian, Perth Section: Letters Article Type: Letter Classification: Capital City Daily : 147,676 Page: 44 Printed size: 85.00cm² Market: WA Country: Australia ASR: AUD 1,490 words: 173 Item ID: Page 1 of 1 Ethics and the banks Evidence at the banking royal commission has revealed that company boards have got it badly wrong in building ethical workplace cultures. By building remuneration packages for company executives around incentive payments, they were asking for trouble. Incentives are designed to stimulate self-interest. It is of little surprise that a mercenary culture of dishonesty and exploitation has been spawned. Lots of well-written corporate governance statements about ethical standards have not cut through in business practice. Two courses of action are open to these boards to fix the mess they have created. They could do away with incentive payments altogether, or drastically reduce their prominence within executive remuneration packages. The other course of action is to pay for decent advice about how to inculcate high standards of ethical behaviour in their companies. I would not turn to the ubiquitous remuneration consultants for this advice. They are more than likely to design an incentives program to stimulate ethical behaviour, which would miss the point. A well-qualified ethicist would give the right advice. John Ferguson, Australind

78 Gladstone Observer, Gladstone QLD Author: John Dagge Section: General News Article Type: News Item Classification: Regional : 3,301 Page: 21 Printed size: cm² Market: QLD Country: Australia ASR: AUD 229 words: 497 Item ID: Page 1 of 1 CBA has fallen from grace JOHN DAGGE COMMONWEALTH Bank chair Catherine Livingstone has defended selecting an internal candidate to run the bank after the industry regulator slammed its culture as insular, complacent and indifferent to customer mistreatment. And new CBA chief Matt Comyn will forgo $2.2 million in short-term bonuses this year in the wake of the watchdog s stinging rebuke. The nation s biggest lender has also been ordered by the Australian Prudential Regulation Authority to top up its capital levels by $1 billion until it has improved its governance practices. Federal Treasurer Scott Morrison said he expected more CBA board directors and executives to resign following the release of the damning report. A number of board members and executives have already gone, he said. My understanding is there will be others who will be leaving, and that s what I expect. The banking regulator s report, released on Tuesday, found a succession of bumper profits had dulled the senses of CBA management to bad behaviour. Executives were unaccountable for poor work practices and the board did not challenge them when problems emerged. The bank was complacent, insular, did not learn from past mistakes and had a tin ear to external criticism, the report concluded, adding that CBA has fallen from grace. Its remuneration framework had little sting for senior managers who oversaw poor customer outcomes and rewarded staff for engaging in activities that did not necessarily produce good customer outcomes. Decision making processes were complex and bureaucratic and favoured collegiality and collaboration over decisiveness and effective outcomes. APRA started investigating the bank s culture and governance in August following a string of scandals including allegations it breached anti-money laundering laws more than 50,000 times. Mr Comyn, who previously ran its retail banking division, took over the top management job last month. He has spent the bulk of his career at the CBA, and the decision to appoint an internal candidate instead of signalling a fresh start by hiring an outsider surprised many. Ms Livingstone on Tuesday said the report strengthened the case for elevating Mr Comyn to the chief executive position given his hands-on knowledge of the bank. Mr Comyn had also stepped up and taken responsibility for shortcomings identified when the nation s dirty-money watchdog, the Australian Transaction Reports and Analysis Centre, last year accused it of repeatedly breaching anti-money laundering laws, Ms Livingstone said. Matt has an intimate knowledge of the bank and has demonstrated he is someone who gets things done, she said. Mr Comyn, who is still eligible to receive long-term bonuses worth up to $4 million this year, said the APRA report was clear, insightful and confronting. Both Mr Comyn and Ms Livingstone pushed at Mr Morrison s suggestion more heads needed to roll, with Mr Comyn saying there had already been departures since the report was commissioned. Ms Livingstone said the bank was in the middle of an intensive process of board renewal and it was important to balance the pace of change with the need to retain institutional memory.

79 Sunshine Coast Daily, Maroochydore QLD Section: Letters Article Type: Letter Classification: Regional : 10,046 Page: 24 Printed size: 59.00cm² Market: QLD Country: Australia ASR: AUD 66 words: 150 Item ID: Page 1 of 1 We ve lost trust, respect MOST Australians trusted the financial industry and were shocked to the spine at the discovery and exposure of AMP and the four big banks for illegal rorting and manipulation of the customer to maximise profit. We have now lost trust and respect, and it will be a decade or two before this era is forgotten. With the people scammed by the financial industry, what about the superannuation industry that was forced on us? Once the royal commission into the finance manipulators completes its present tasks, the government must issue new terms of reference to investigate the integrity of all the superannuation mob because there will be similar activities in breach of the legislation. ROBERT S BUICK Mountain Creek LETTERS: All letters must be submitted with the writer s full name, suburb (both for publication) as well as their full address and a contact phone number (for verification but not publication).

80 Australian Financial Review, Australia Section: Editorials Article Type: Editorial Classification: National : 44,635 Page: 54 Printed size: cm² Market: National Country: Australia ASR: AUD 6,250 words: 687 Item ID: Page 1 of 1 Labor is ramping up active hostility to business THE AFR VIEW As Labor tilts full populist, Bill Shorten has ramped up the sort of rhetorical flair one would expect from the ex-union boss who has routinely smashed Malcolm Turnbull in the hand to hand combat of retail politics. In doing so he has turned Labor from the party of the open economy and competitive markets to a party actively hostile to large enterprises. Day in and day out Mr Shorten denounces business, referring to tax cuts for the prime ministers rich mates, multinationals not paying their fair share and getting a tax cut In all his rhetoric is the underlying message: how dare you give an tax relief to the wealthy, when government can spend it better. Yet at the heart of Mr Shorten's hot and heavy utterances are two untruths: the first is that the banks or big profitable companies somehow succeed at the expense of ordinary Australians. They don't any more because ordinary Australians ultimately own much of Australia's banks. Their success benefits all Australians through workers' own industry super funds, which invest big in big bank shares. Ordinary Australians are ultimately the owners of Australia's banks. The second is that Mr Shorten and Labor know that taxing capital more heavily, such as through a high 30 per cent company tax rate, will actually end up hurting workers by making them less productive. That might actually help Labor politically because it shifts the argument to carving up the pie, rather than growing bigger shares for all. Both Mr Shorten and his shadow treasurer know this as they argued in favour of cutting the company tax rate while the Rudd/Gillard/Rudd governments they were a part of sank Australia into a state of perma-deficits. Now, having blocked Coalition attempts to fix the nation's finances, Labor is decrying tax cuts because the country can't afford them 'right now', and even if it could, government should have other priorities like big spending monuments in health and education. While denouncing the banks and big business more generally as greedy, unethical and tax-dodging, Mr Shorten refuses to slap to down the quasi-criminal Construction Forestry Energy and Mining Union, an organisation with over 100 officials facing the courts, and senior Victorian officials facing blackmail charges. Unlike former Labor leader and Australian Council of Trade Unions boss Bob Hawke - who helped deregister the Builders Labourers Federation - Mr Shorten has cravenly enabled the bully boy politics of union patronage, gratefully accepting CFMEU support. In the meantime, the ACTU, guided by the undergraduate scribblings of secretary Sally McManus, is mounting an anti-business campaign based on the sort of class war rhetoric not seen in the post-1980s reform era. The Turnbull government regrettably opened the door to Labor's rank populism. Scott Morrison's bank tax in last year's budget played into Labor's hands, by making business-bashing and new taxes for unpopular industries acceptable. And then on Tuesday, Mr Morrison tangled himself in knots, taking credit for The Australian Prudential Regulation Authority's damning report into the corporate culture at the Commonwealth Bankand denouncing banker behaviour before appearing to suggest that more heads should roll at the bank. This despite the fact that APRA effectively endorsed the new regime under chair Catherine Livingstone. Shadow Treasurer Chris Bowen, to his credit, was a voice of reason, rejected Mr Morrison's calls and saying that asking board members to quit was rash. Mr Bowen has learnt from Labor's mistake at the 2016 election, when it projected bigger budget deficits over the following four years than the Turnbull government. As political editor Phillip Coorey writes today, Labor now looks set to match the government's income tax cuts to be announced in Tuesday's budget and use its own tax hikes - on upper income earners, on negative gearing and capital gains - to deliver bigger projected surpluses. Compared to the Coalition, it appears headed towards promising more spending, higher taxes - and bigger surpluses. That's if you believe that bigger government, more taxes and re-empowering the CFMEU can do the job of business in growing the economy. Can more taxes and the CFMEU do the job of business in running the economy?

81 Australian Financial Review, Australia Section: Letters Article Type: Letter Classification: National : 44,635 Page: 51 Printed size: 42.00cm² Market: National Country: Australia ASR: AUD 850 words: 97 Item ID: Page 1 of 1 Bank regulator must stick to its knitting Commonwealth Bank has a culture of arrogance and complacency, insufficient rigour and urgency, and has developed a complacent and insular culture ("CBA: no more heads will roll", May 2), so the prudential regulator enlightens us. How much of these are matters for the regulator as distinct from business competitiveness indicators of concern to shareholders? Does the regulator have an arrogance meter, a complacency meter, or an insular-culture meter to measure these post-modernist-accountancy KPIs? Are there to be regulations against arrogance with penalty by severity level? Stick to regulation and crime, not grandstanding. Malcolm Cameron Camberwell, Vic

82 Sunshine Coast Daily, Maroochydore QLD Author: Chloe Lyons Section: General News Article Type: News Item Classification: Regional : 10,046 Page: 1 Printed size: cm² Market: QLD Country: Australia ASR: AUD 1,161 words: 482 Item ID: Page 1 of 3 AFTER years of campaigning, Fairfax MP Ted O Brien will today see $390m announced for the long-awaited North Coast rail duplication. REPORT P4

83 Sunshine Coast Daily, Maroochydore QLD Author: Chloe Lyons Section: General News Article Type: News Item Classification: Regional : 10,046 Page: 1 Printed size: cm² Market: QLD Country: Australia ASR: AUD 1,161 words: 482 Item ID: Page 2 of 3 Rail duplication gets $390m cash injection CHLOE LYONS chloe.lyons@scnews.com.au THE Federal Government will today commit $390 million to the North Coast rail duplication after a lengthy campaign by Fairfax MP Ted O Brien, with hopes it will be a precursor to a fast train to Brisbane. Pending funding from the State Government, the project will duplicate the 20km rail line between Beerburrum and Landsborough and upgrade the 19km stretch between Landsborough and Nambour by extending passing loops, realigning routes, upgrading stations and providing extra parking. Deputy Prime Minister Michael McCormack and Minister Paul Fletcher are expected to officially announce the funding today, with Mr O Brien touting the move as a significant milestone for the Coast. The current North Coast line is too slow, too congested and very old, he said. The passenger trains travel at an agonisingly slow 52km/h, which is stone-aged speed when you think bullet trains can hit 250km/h. Now, Mr O Brien is calling on the State Government to step up and commit to their half of the funding. They have been supportive of our fast rail plans and now the Federal Government is putting serious money towards the business case they submitted to Infrastructure Australia for rail duplication, so its a bit of a no-brainer, he said. Fisher MP Andrew Wallace welcomed the announcement which he said would be a significant economic boost to the region, creating more than 600 jobs and driving even more investment into the local economy. This is something Ted and I have been working on since we were elected, he said. As the Sunshine Coast continues to grow as will our need for passenger rail and freight rail. The duplication would act as a potential launch pad for the fast rail, according to Minister for Urban Infrastructure and Cities Paul Fletcher, with a business case expected to be completed next year. That business case will take as its starting point the upgraded Beerburrum to Nambour line the subject of today s funding announcement and will examine potential further investments which would allow a faster rail service to be delivered between Sunshine Coast and Brisbane, he said. Mr O Brien thanked the Daily as well as the public for ing the project and said a united force was vital to get the project completed. Not only do we need State Government support with hundreds of millions to match the Federal contribution, but we need to continue working together right across the Sunshine Coast for fast rail, he said. Sign up to the Get on Board campaign and throw your support behind the future of rail at

84 Sunshine Coast Daily, Maroochydore QLD Author: Chloe Lyons Section: General News Article Type: News Item Classification: Regional : 10,046 Page: 1 Printed size: cm² Market: QLD Country: Australia ASR: AUD 1,161 words: 482 Item ID: Page 3 of 3 SIGNIFICANT MILESTONE: Sunshine Coast MPs Ted O Brien and Andrew Wallace celebrate $390 million in funding for the North Coast rail duplication. Photo: Warren Lynam

85 Australian Financial Review, Australia Author: Rod Maddock Section: General News Article Type: News Item Classification: National : 44,635 Page: 54 Printed size: cm² Market: National Country: Australia ASR: AUD 5,805 words: 801 Item ID: Page 1 of 1 CBA probe a service to Australia Finance in trouble A frank and fearless analysis of CBA's inner workings will help the rest ofcorporate Australia avoid such leadership failures. Rod Maddock The banking royal commission has been full of horror stories. To some extent this is not surprising. Banks undertake millions of transactions per year so it is hardly surprising that there are some shockers in the mix. The Catholic Church and the Returned Services League have provided similar front page news stories over the last year. It is hard to tell from the commission however just how systemic the issues are. But the Australian Prudential Regulation Authority's review of the Commonwealth Bank of Australia has provided a case study of some of the deep sources of the problems. It has found three core concerns: The board and its audit and risk committees failed to provide appropriate governance, to ask appropriate questions and to seek appropriate information. Leadership was deficient at the highest level. The second issue was that management did not pay sufficient attention to risk, compliance and internal audit issues, the priorities were too low and the information flows excessively massaged. Management approaches were excessively legalistic and defensive. There was a failure to take nonfinancial risk sufficiently seriously. The third concern was that the executive committee was poorly focused. Under the divisional structure of the organisation, senior executives took responsibility for 'their' businesses and did not ask difficult questions of one another. The culture was too accommodating. There are lessons here for most corporations. As the federal Treasurer has pointed out boards must take their responsibilities seriously; risk, audit and compliance functions provide important organisational defences and should be seen in that way, and companies much find ways for executives to query one another without it being seen as undermining each other. The question of how CBA got itself into this mess is important For most banks financial risks are normally the most dangerous. Institutions which fail almost always do so because they were unable to obtain funding of their book, or they lent money to people and could not get it. Funding and credit risk are existential issues for banks. So, especially after the financial crisis, it is hardly surprising that the CBA board should have been deeply focused on financial risk. Getting a strong voice for risk, compliance and audit at the table is hard in all banks and most institutions. We would all like for focus on the revenue raisers rather than the cost centres. In football we focus much more attention on the goal scorer and much less on the full. In CBA the main concern about customers was around the eternally measured customer satisfaction metric and much less on customer complaints. Most of the staff got bonuses on the group performance on customer satisfaction. This was important for improving the overall customer service but clearly missed out on the early warning signals which come from complaints. CBA moved to leadership among the major banks on the thing it measured, but clearly it distorted perceptions and practice. The strong independence of the divisions, coupled with an unwillingness to challenge the heads of other divisions, also has a history. Under David Murray there had been a lot of ill-will and unco-operative behaviour between the divisions of the bank. Ralph Norris changed that. He installed "trust and team spirit" as one of his core values. This had many positive ramifications for the institutions and divisions and service areas cooperated much more openly in achieving collective objectives. The bank's performance improved markedly. It seems however that this cultural value gradually morphed into one where it was seen as inappropriate to openly challenge one another around the executive table. Trying to get this balance right is hard. The people sitting around the executive committee table inevitably see each other as competitors for the top job. Engaging them in constructive criticism will always be difficult. It seems as if CBA switched from an excessively critical executive culture to an excessively cooperative one. Overall the review committee has done Australia a service. It has used CBA as a case study in how boards of directors should operate and provided lessons about how some important problems might be avoided. It also provides some guidance to the royal commission about how to address some of the concerns it has raised. The new chairman of the CBA board can take some comfort from the general view of the review panel that structures and practices have already improved under her stewardship. The report also provides a lot of specific guidance to the new CEO as to what needs to change and how it should be done. Rodney Maddock is a professor at Monash Business School, Monash University, and professor and Vice-Chancellor's Fellow, Victoria University. He is a non-executive director of CEDA.

86 Australian Financial Review, Australia Author: Thomas Parry Section: General News Article Type: News Item Classification: National : 44,635 Page: 55 Printed size: cm² Market: National Country: Australia ASR: AUD 7,120 words: 943 Item ID: Page 1 of 2 Bank incentive and the client's interest do not have to clash Finance in trouble 3 Comprehensive audits of advice will always be cheaper than penalties and public disgrace. Thomas Parry All the finger-pointing, blame-shifting and mea culpas obscure the underlying problem with what's gone wrong with so many of our financial institutions' failures in the stewardship of clients' hard-earned savings: applying the fundamental test of "client's best interests". And the way in which most of the reward and incentive structures have been set up - from the top of the governance tree, the board, through to the client-facing financial advisers - has created a conflict of interest that can only compromise the "best interest" test We shouldn't be naive about how these financial institutions operate. Whether working in a private sector bank, or superannuation fund, or a financial adviser/ manager of a profit-for-member superannuation fund, it is reasonable to expect the adviser will be suggesting products offered by that institution. It's hardly reasonable to expect an adviser from XYZ superannuation fund to suggest a member move their funds to another superannuation fund. Similarly, if a financial institution has investment products that are offered by that institution as well as other institutions, there will be a bias to promoting "home products". It's hard to get away from this reality. Unless financial institutions move away voluntarily or are otherwise precluded from providing these integrated offerings of advice; product and administration. But as long as we have these integrated offerings by banks; superannuation funds and others, regardless of whether they are for-shareholder profit or for-members profit the system must have an incentive structure that underpins the "best interest" test This is missing in our current system. There are (or at least were) some financial advice institutions that base adviser incentives and rewards on client service - such as the delivery of high-quality and "appropriate" advice - not on the amount of business written or funds under advice. The delivery of financial services that meet the "best interest" test requires a number of things. Firstly it requires recognition that the financial institution has a fiduciary obligation to the individual to whom it is providing financial services, whether advice or insurance, or funds management. There is an overwhelming asymmetry of knowledge favouring the financial institution (and hopefully the adviser, though this is sometimes doubtful) over most individuals. Financial literacy is notoriously poor among the population. Trustees of superannuation funds are aware of their fiduciary obligations (or should be). This obligation should be formally extended to all those who have the stewardship of people's financial affairs. And it must become a core part of the culture of these institutions. A corollary of this fiduciary obligation is that financial advice and related services must be transparent and clearly explained (not dozens of pages of fine-print product disclosure). This fiduciary relationship should create and sustain trust in the financial institution. Further, individuals offering financial advice and managing the savings of individuals should be subject to professional standards with ongoing compliance monitoring. What this might look like in terms of training, accreditation, supervision and monitoring is something the professional associations and regulators are well-placed to develop and implement - and they must Financial institutions must put in place a comprehensive, independent program of robust audit of advice provided to clients. This should be done in cooperation with and, perhaps, as an agent of the relevant regulators. This requires considerable investment in systems and technology as well as auditors. This is not cheap. But with hindsight possibly much cheaper than the costs of remediation and penalties for failure to comply with the regulatory obligations. A large part of the problem is the incentives that drive senior management incentives that are put in place by boards. These are heavily weighted towards shortterm financial outcomes: earnings growth being one of the major drivers for listed institutions. No matter how much focus there is on other metrics, the short-term financial performance, particularly for listed entities, is the major incentive and the major driver of behaviour. Boards are responsible for governance. They set and evaluate KPIs. It is up to boards to move away from an emphasis on the current KPIs that underpin the behaviours we are seeing. Boards need to focus on the longer-term sustainability of the business as well as driving behaviours that are aligned with the best interests of the client base. These go together; they are not inconsistent For a start, boards and senior management should focus on developing lead and lag metrics that measure how client outcomes align with the commitment to the client They should have regard to the evidence from the independent risk-based audit of advice as to how and whether the fiduciary obligations are being met the quality of advice and service. They should develop measures as to how well advice aligns with client's risk/reward-based expectations, and, indeed, whether these expectations are realistic and reasonable. And if the institutions can shift the focus of KPIs to appropriate fiduciary tests then perhaps regulators can step and focus on training, standards and compliance. There may be more radical solutions to the problems that are now receiving so much attention; such as the forced separation of the provision of advice from the provision of investment product However, this may not be the most efficient solution. But a very different incentive regime with the right alignment of interests driven by the board plus a strong regulatory framework driven by ASIC and APRA is a good place to start Thomas Parry sits on several boards and until recently was a director ofasx-compliance and chairman of First State Super.

87 Australian Financial Review, Australia Author: Thomas Parry Section: General News Article Type: News Item Classification: National : 44,635 Page: 55 Printed size: cm² Market: National Country: Australia ASR: AUD 7,120 words: 943 Item ID: Page 2 of 2 We should not be naive. It's reasonable to expect that advisers will suggest products offered by that institution.

88 The Australian, Australia Author: Adam Creighton Section: Edition Changes - All-round First Article Type: News Item Classification: National : 94,448 Page: 1 Printed size: cm² Market: National Country: Australia ASR: AUD 10,286 words: 892 Item ID: Page 1 of 3 LANDMARK STUDY REVEALS ECONOMIC GAINS Company tax cuts lift jobs growth 2018 FEDERAL BUDGET EXCLUSIVE ADAM CREIGHTON ECONOMICS CORRESPONDENT Businesses that received the first wave of the Coalition government s company tax cuts created jobs 24 per cent faster than those who missed out, according to a landmark study that boosts the case for extending the cut to all companies. Ahead of a federal budget expected to feature further tax changes, analysis of the financial decisions of more than 69,000 businesses found those that enjoyed a 1.5 percentage point cut in their company tax rate in 2015, worth $2900 on average, put more than a fifth of it into hiring workers and boosting wages. A little over a quarter went towards new investment and 51 per cent was kept in reserve, according to the largest analysis of its kind undertaken by AlphaBeta on behalf of accounting firm Xero. Small Business Council chief executive Peter Strong said he was shocked more than 51 per cent didn t go towards cashflow. He said the study strengthened the government s case to cut company tax to 25 per cent for all companies. Basically half of the cut went to wages or growth or investment, Mr Strong said. That s a real sign of the economic potential of this government policy. He said bigger firms, thus far excluded from the tax cuts, were more likely to use them to hire workers and to lift wages. Cashflow isn t such an issue when you re bigger, he said. The Turnbull government s signature economic reform the phased reduction of the company tax rate by July 2026 has been blocked by Labor and the Greens in the Senate for almost two years. From July this year, the lower company tax rate, now 27.5 per cent, will extend to companies with turnover up to $50 million, the maximum under current law. The Business Council of Australia recently ramped up efforts to get crossbench senators and the public on board, calling for its members to contribute to a campaign fund. Qantas chief executive Alan Joyce yesterday confirmed the airline had contributed $200,000.

89 The Australian, Australia Author: Adam Creighton Section: Edition Changes - All-round First Article Type: News Item Classification: National : 94,448 Page: 1 Printed size: cm² Market: National Country: Australia ASR: AUD 10,286 words: 892 Item ID: Page 2 of 3 We re very much supporters of the BCA and believe it has to be out there supporting actively the case for corporate tax cuts, he said. If the corporate tax rate is not competitive and investment is drained out of this country, which it will be, then all of our customers will suffer, and that will have a terrible effect on confidence. Labor has seized on the financial misconduct exposed at the financial services royal commission to argue against the tax cut, promising to reverse any cut legislated before the next election. Continued on Page 4 MORE REPORTS P4 DAVID UREN P12 EDITORIAL P13 Company tax cuts lift jobs growth, study finds Continued from Page 1 The AlphaBeta study found companies with turnover just below the $2m threshold to receive the first round of cuts increased employment by 2.6 per cent over the two years from July 2015, compared with 2.1 per cent for those with turnover just above. Andrew Charlton, director of AlphaBeta and a former senior economic adviser to Kevin Rudd in his first stint as prime minister, said there was so much heat and light about the impact of company tax cuts, but it was all based on abstract modelling and a few surveys. This is real evidence from real companies, he said. The study also found an unusually low share of businesses with turnover just above $2m and a higher share just below, suggesting restricting the scope of the corporate tax cuts had had perverse consequences for business behaviour. Incorporated firms below the $2m threshold increased their employment by more than unincorporated firms of a similar size, the report said. The ultimate impact of company tax cuts on dom- estic shareholders is mitigated by dividend imputation, so the effect of tax cuts may be more significant for larger businesses if their share of foreign ownership is higher. The government, which in March fell short by a handful of votes of legislating the second round of tax cuts, worth more than $30bn over a decade, is expected to keep the measure in the budget. The study found that 3 per cent of the tax cut went towards higher wages for current employees, compared with 19 per cent for hiring extra workers. This reflected the broader trend of stagnant wage growth and strong jobs growth. Dr Charlton said the modest impact on wages in the first years didn t mean wages wouldn t rise over time. A separate survey of 502 Xero customers found 34 per cent weren t aware there had been a corporate tax cut. Little data and analysis have been available up until this point on (whether) they ve actually made an impact, Xero chief executive Trent Innes said.

90 The Australian, Australia Author: Adam Creighton Section: Edition Changes - All-round First Article Type: News Item Classification: National : 94,448 Page: 1 Printed size: cm² Market: National Country: Australia ASR: AUD 10,286 words: 892 Item ID: Page 3 of 3 ECONOMIC GAINS In 2015, corporate taxes were cut from 30% to 28.5% for companies with turnover below $2m The cut delivered an average benefit of about $2940 for firms close to the threshold How small businesses 3% used the funds? Increased 19% cash Lifted investment 27% Hired 51% workers Raised wages Firms taking advantage of the tax cut turnover below the threshold Frequency, % Turnover threshold Gap in the distribution suggests that some firms may have responded to the threshold by reducing their reported turnover $1m $2m $3m $4m Firm turnover Source: alphabeta

91 Australian Financial Review, Australia Section: General News Article Type: News Item Classification: National : 44,635 Page: 56 Printed size: cm² Market: National Country: Australia ASR: AUD 12,561 words: 1222 Item ID: Page 1 of 2 Chanticleer For crowing there was not his equal in all the land... Thursday 3 May 2018 Good governance needs diversity The widely divergent responses to the governance failures at AMP, which was chaired by a woman, and Commonwealth Bank of Australia, which was chaired by a man, say a lot about how hard it is to advance gender diversity in Australian business. The fact that AMP under the chairmanship of Catherine Brenner and her two male predecessors had been at the vanguard of boardroom gender diversity is reason for some to declare that all gender diversity targets should be abandoned. Apparently we should no longer aspire to have the senior management of our companies and the directors of public companies reflect the 50:50 gender split in the general population. This gender split is played out in all walks of life but most notably in university degree courses and in the ranks of just about every profession. Using AMP as the bedrock of an argument against gender diversity skates over the concept of collective board responsibility and the fact mat several highly qualified men with deep experience in insurance were on the board and did not manage to stop the breakdown in the company's risk culture. It was telling this week that when the operational risk failings at Commonwealth Bank of Australia - which occurred under the chairmanship of David Turner - were revealed by the prudential regulator, no one played the gender card. Chanticleer did not hear any cries for boards to stop hiring former successful male CEOs just because Turner did not communicate sufficiently often with his CEO Ian Narev and ran a board that never had time to deal with red flags about operational risk. By the way, it was a fellow male board member at CBA who chaired the audit committee. That's the committee that never managed to close out the multiple antimoney laundering warnings alerted to the committee by management There is no direct link between the audit committee's failings and CBA being sued by the financial intelligence regulator, AUSTRAC, for admitted breaches of the anti-money laundering and counter terrorism financing laws. But the possible heavy cost of a class action against CBA could well have been avoided with timely responses to the operational risk issues. CBA has made a provision of $375 million to cover possible court-imposed penalties in the AUSTRAC case but the ultimate cost could well be closer to $1 billion. The CBA and AMP cases both offer interesting cultural breakdown case studies that provide insights into boardroom succession planning and, dare I say it, the sometimes bitter politics at play within boardrooms. CBA's board appeared to tick all the right boxes with its mix of former CEOs, bankers, accountants, consultants and its admirable gender diversity. But APRA's report lays out its risk management failings while delivering some of the highest financial returns achieved by a publicly listed bank of its size in the world over the past decade. Traditionalists would have been pleased to see Turner at the head of the CBA board. After all he was a former CEO, having ran Brambles Pic in the UK. It will have been lost on the gender diversity luddites that it is a woman, Catherine Livingstone, who is leading the remedial program at CBA designed to fix its broken operational risk management. Livingstone is highly respected for her willingness to take tough decisions. Chanticleer was critical of her decision not to replace Narev with someone from outside the company, but she took the view that Matt Comyn was the best person for the job and the appointment would not be dictated by popular opinion. One leading company director told Chanticleer that no one was entitled to sit at a board table unless they had previously sat at one as an executive. This extremist position would mean that the only people. who could be company directors would be former chief executives and the odd chief financial officer who managed to win a board seat Of course, this benchmark would not only exclude about 70 to 80 per cent of the directors on Australian company boards, it would preclude at least 95 per cent of women on boards or those women aspiring to join boards. Is it a surprise that a male director would lay out a criteria for board membership that would exclude most women in Australia? Not really, given what we know from many research studies about the pattern of behaviour of male directors who tend to employ people in their own image. Those fighting furiously against gender diversity on boards would probably like to see this must-have-been-a-ceo criteria enforced. It would severely limit the opportunities for women and cruel any chance of meeting the already weak gender diversity targets recommended by the Australian Institute of Company Directors. Anyway, there is a fatal flaw in the proposition that only those who have run a company can be on the board of a company. It ignores the core skills required in a company director. CEOs develop strategy, drive change, spell out the future to staff, delegate authority to those more capable than themselves and, as we learnt from the

92 Australian Financial Review, Australia Section: General News Article Type: News Item Classification: National : 44,635 Page: 56 Printed size: cm² Market: National Country: Australia ASR: AUD 12,561 words: 1222 Item ID: Page 2 of 2 APRA report, avoid falling into the trap of allowing a collegiate and collaborative culture to suppress tough decision making. This is a vastly different job to someone overseeing the interests of the entire company and supervising management A director's job is not to ran the company. Two leading directors, Kathryn Fagg and Carol Schwartz, who both sit on the board of the Reserve Bank of Australia, told Chanticleer it is a director's role to ask difficult questions, to challenge management and be bold enough to speak up. Both Fagg and Schwartz say there are plenty of qualified women able to fill positions on boards. Their assessment is ed up by assessment of Wesfarmers director Diane Smith-Gander and Elizabeth Johnstone, who is chairman of the ASX Corporate Governance Council. All four women talk about the importance of a diversity of opinions on boards and not just a diversity of gender. Nevertheless, research has shown that companies with gender diversity on boards perform better than those that don't The research is referenced in the council's fourth edition of corporate governance principles and recommendations. It calls for a 30 per cent gender diversity at the top 300 companies by June next year. The principles are on the basis of "if not why not", which gives companies too much wriggle room to do nothing. The ASX Corporate Governance Council is arguably the most influential meeting of minds in Australian business. It brings together just about every industry body from business, law, financial markets, funds management accounting, auditing and property. But the collective minds on the council have set a gender diversity target that is not far off the existing situation. The gender diversity on the S&P ASX 200 is already near 28 per cent and for the top 300 it is 24.6 per cent. There's not much boldness there. However, it is a tribute to the prescience of the council that it identified the principles of good corporate governance well before the revelations of the breakdown in risk management cultures at AMP and the Commonwealth Bank. TONYBOYD It will have been lost on the gender diversity luddites that it is a woman, Catherine Livingstone, who is leading the remedial program at CBA designed to fix its broken operational risk management.

93 Australian Financial Review, Australia Author: Jenny Wiggins Section: Companies and Markets Article Type: News Item Classification: National : 44,635 Page: 32 Printed size: cm² Market: National Country: Australia ASR: AUD 4,632 words: 450 Item ID: Page 1 of 1 Newcastle truck freight could save $16m in tolls Jenny Wiggins Toll fares account for up to 20 per cent of the costs of moving freight from Port Botany to western Sydney warehouses, analysis from Deloitte Access Economics shows, as the Port of Newcastle continues its push to establish a competitive container terminal business. The report, prepared for the Port of Newcastle, estimates about $16.2 million is spent annually on transporting road freight that ends up in regions closer to Newcastle than Botany, including the Central Coast and the Hunter Valley. The analysis is based on assumptions that freight moved on roads accounts for 50 per cent of exports and 80 per cent of imports (with the remainder moved on rail). "If the Port of Newcastle was opened to international trade, then business in northern NSW could begin to trade from the Port of Newcastle instead of Port Botany," the report says. "Over time the rest of their logistics chains (such as distribution centres) would relocate to the Newcastle or Hunter region, allowing businesses to avoid Sydney and so reduce the need to pay for access to toll roads." Sydney has nine toll roads, including the M5 and M7, that carry traffic into western Sydney, while Newcastle has none. Sydney will add more toll roads when NorthConnex opens in late 2019, and WestConnex - which will charge tolls of $26.85 for trucks, rising at least 4 per cent annually - opens in WestConnex is marketed by the NSW government as "a vital link" to Port Botany that will shift heavy vehicles underground, even though it will not connect directly with Port Botany. The NSW government is planning another toll road, known as Sydney Gateway, to link WestConnex to the port Deloitte says that, while 87 per cent of imported containers are initially moved within the greater Sydney area, about 27 per cent eventually end up regions around Newcastle. The report comes as Newcastle, which mostly handles coal and other commodities, awaits the outcome of inquiries by the Australian Competition and Consumer Commission into "contractual restrictions" that put a $100 fee on every container moved in and out after an annual cap of 30, foot equivalent units is reached. Under a deal struck with the NSW government, which sold Port Botany and Port Kembla in 2013, the fees end up with the ports' owners, a consortium of investment funds known as NSW Ports that includes Australian Super and IFM. The ACCC is assessing if the restrictions prevent the expansion of a container terminal at the Port of Newcastle, owned by China Merchants and The Infrastructure Fund, and limit competition. The Port of Newcastle is waiting for inquiries by the Australian Competition and Consumer Commission into "contractual restrictions", PHOTO: MAX MASON-HUBERS

94 Canberra Times, Canberra Author: John Collett Section: Business News Article Type: News Item Classification: Capital City Daily : 17,579 Page: 20 Printed size: cm² Market: ACT Country: Australia ASR: AUD 6,378 words: 527 Item ID: Page 1 of 1 FINANCE Financial advisers are quitting Exodus of planners hits AMP John Collett Embattled wealth giant AMP faces an accelerating exodus of financial planners from its network in the wake of the past fortnight s shredding of its reputation over its treatment of customers and dealings with the corporate regulator. AMP chairman Catherine Brenner, chief executive Craig Meller and chief legal counsel Brian Salter have all left the company after damaging admissions at the Hayne royal commission. Industry experts report that the turmoil has now spread beyond the boardroom and into AMP s 2760-strong adviser network, with many likely questioning their future with the wealth manager. Daniel Brammall, the president of the Independent Financial Advisers Association of Australia, said calls to the association from planners working for the big institutions since the start of the royal commission had increased five times. Calls are now running at between 20 and 25 a month, and a quarter of those are from AMP financial planners worried about reputational issues, he said. It is the owners of the small firms, such as sole owner-planners, and those with a small number of employees operating under AMP s licence who were calling to seek advice on how to go about settingup under their own licence, he said. They are considering their options... one [AMP] guy said to me that if we are ever going to go, now is the time to do it, Mr Brammall said. Rainmaker Information director of research Alex Dunnin said AMP would continue to lose financial advisers from its advice licensees as it had in the past two years lost 453, or 14 per cent, of its advisers. Indeed, the royal commission fallout may see these moves gather pace, but let s be circumspect, he said. But he said it was way too early to write off the wealth manager. AMP is by far the number one advice group in Australia, he said. Another potential problem for AMP could be in attracting the best and brightest from the new generation of planners, said Chanaka Gunasekera, an equity analyst at Morningstar. If you were a younger financial planner you would think twice about joining AMP given the media attention and widespread criticism of their conduct, he said. Peter Warnes, the head of equities research at Morningstar Financial, said attracting clients would also be more difficult though the public was likely to tar AMP and the big banks with the same brush. AMP is the main fall guy so far in the royal commission, but the cultural issues and misconduct are much wider than just AMP. People generally will be gun shy of all of them rather than just AMP, he said. AMP was placed on a negative credit watch by S&P Global Ratings on Wednesday following the admissions of misconduct in the advice business. While noting AMP s very strong business and financial position, S&P said the wealth manager s market position and operating performance could be hurt by the brand damage. We believe that the group s prospective competitive position may be at risk of weakening following the damage to its brand and reputation, it said in a statement. AMP shares closed at $4.16 yesterday, up 2.72 per cent for the day.

95 Canberra Times, Canberra Author: Elizabeth Knight Section: Business News Article Type: News Item Classification: Capital City Daily : 17,579 Page: 20 Printed size: cm² Market: ACT Country: Australia ASR: AUD 16,572 words: 496 Item ID: Page 1 of 2 AMP s largest shareholder breaks silence COMMENT Elizabeth Knight AMP s largest shareholder has broken its silence on the scandal-ridden Australian finance company expressing its shock and disappointment at the revelations made during the royal commission into financial services. US investment behemoth David Herro s Harris Associates holds just over 5 per of the stricken wealth giant and thought it was buying value. That, though, was before its royal commission induced implosion. This is not something we were expecting Harris Associates Portfolio Manager and Director of International Research, Justin Hance said on Wednesday from Chicago after AMP s share price slumped 25 per cent over the past three weeks. Having watched video clips from the royal commission hearing he said some things were definitely very surprising and disappointing. Harris doesn t get surprised very often. Twice in the past decade Herro has been named Morningstar s international equity manager of the year. It has been suggested that Harris, which has a history as an activist shareholder, had pushed for the removal of AMP s previous chief executive Craig Meller and its recently deposed chairman Catherine Brenner. Mr Hance said only that the investment company, which manages $187 billion in funds, was supportive of the recent departure of both Mr Meller and Ms Brenner. He said the move puts it (AMP) in a better position going forward. It s one thing to make a mistake it s another how you handle that mistake, he said. The resignations came after the royal commission uncovered numerous instances of malpractice across AMP, including misleading the regulator and customers, interfering with independent reports, producing poor financial advice, charging customers for services which weren t provided and excessive fees on legacy retail platforms. For now, Harris will stick with interim executive chairman Mike Wilkins and his team. We remain large shareholders of AMP and believe the shares at present are trading at a material discount to intrinsic value, he said. Mr Hance conceded there had been value loss and appreciated the fact that analysts have downgraded both AMP s earnings and share price targets. But he said he thinks the share price fall has been an overreaction. Deutsche Bank, for example, has cut its earnings forecast by 10 per cent for the 2020 financial year. It has a hold rating on AMP while others rate it as a sell. Harris Associates votes will be crucial to deciding whether the three directors that are up for re-election at next week s AMP annual meeting will retain their seats. Mr Hance would not comment on how Harris will vote. He said he understood why other shareholders wanted to toss out the entire board but thought this was unrealistic. Several other institutional shareholders and industry funds have indicated they will oppose the re-election of any directors and also vote against the remuneration report. Now more than ever AMP needs high calibre directors but potential candidates would not want to be tainted by the damaged AMP brand.

96 Canberra Times, Canberra Author: Elizabeth Knight Section: Business News Article Type: News Item Classification: Capital City Daily : 17,579 Page: 20 Printed size: cm² Market: ACT Country: Australia ASR: AUD 16,572 words: 496 Item ID: Page 2 of 2 David G. Herro (left) and William C. Nygren, of Harris Associates. Photo: The New York Times

97 Canberra Times, Canberra Author: Clancy Yeates Section: Business News Article Type: News Item Classification: Capital City Daily : 17,579 Page: 20 Printed size: cm² Market: ACT Country: Australia ASR: AUD 5,328 words: 363 Item ID: Page 1 of 1 Banks must go beyond BEAR minimum: Byres CULTURE Clancy Yeates The powerful financial regulator is telling banks they must go beyond only doing what is required under new laws if they are to regain the community s trust and repair their battered reputations. After Tuesday s scathing report into the Commonwealth Bank s cultural problems, the Australian Prudential Regulation Authority on Wednesday reminded banks they have more work to do in showing there is accountability in the financial sector. APRA chairman Wayne Byres said laws that coming into effect from July, the Banking Executive Accountability Regime or BEAR, would help by making it much clearer where executive accountabilities lie. After Tuesday s report into CBA criticised the bank s overly complex organisational structure, Mr Byres said that organisational complexity and diffused responsibility have been at the core of many scandals in banking in recent years. Mr Byres said the most important part of the BEAR would be the requirement for banks to create accountability maps, which will set out exactly which areas of banks senior executives are responsible for. But he stressed that on its own, the BEAR was not a panacea to perceptions of a lack of accountability in the financial sector. This provides an opportunity to demonstrate to the community that accountability is actively practiced within the industry, Mr Byres said in a speech in Sydney. To that end, it is important that the BEAR is not seen as a compliance exercise, but rather a trigger to genuinely improve systems of governance, responsibility and accountability. Mr Byres said the BEAR was a strong regulatory foundation, but to fully address the community s concerns, the industry itself would need to do more. As well as the accountability maps, the BEAR will require the big banks to change how they pay their most senior executives, so that between 40 and 60 per cent of bonuses are deferred for at least four years. Senior bankers will face new obligations to act with honesty and integrity, with due skill, care and diligence, and to deal with APRA in an open and constructive way. The regulator will also get the power to disqualify senior bankers and ban them from the industry in extreme cases of misconduct. APRA chief Wayne Byres.

98 Illawarra Mercury, Wollongong NSW Author: Andrew Pearson Section: General News Article Type: News Item Classification: Regional : 10,806 Page: 1 Printed size: cm² Market: NSW Country: Australia ASR: AUD 6,347 words: 406 Item ID: Page 1 of 2 EST 1855 $1.40 INC GST EXCLUSIVE BRIDGING THE GAP New Nowra bridge will be built, Turnbull government says $155 million to be allocated in next week s federal budget Federal money to fund half of total cost NSW government expected to match funding ANDREW PEARSON reports, P2. We ll build bridge: PM EXCLUSIVE BY ANDREW PEARSON A NEW, four-lane bridge will be built over the Shoalhaven River at Nowra, the Prime Minister has vowed. Malcolm Turnbull will visit the Shoalhaven on Thursday and announce a $155 million commitment to build the long-awaited river crossing. However, the money to be allocated in Tuesday s federal budget will only fund half of the project s $310 million estimated total cost; the NSW government will have to chip in the rest. The Mercury understands ongoing discussions between both levels of government have been productive, with the NSW government likely to match the funding. The state budget will be handeddown next month. This $155 million commitment will ease congestion and improve freight movement in the region, Mr Turnbull said. It will mean South Coast residents spend

99 Illawarra Mercury, Wollongong NSW Author: Andrew Pearson Section: General News Article Type: News Item Classification: Regional : 10,806 Page: 1 Printed size: cm² Market: NSW Country: Australia ASR: AUD 6,347 words: 406 Item ID: Page 2 of 2 less time in the car and more time with their families. On average, about 50,000 vehicles cross the Shoalhaven River at Nowra every day. The new bridge would become the third river crossing and carry four lanes of northbound Princes Highway traffic. When the new structure is built, the existing concrete bridge would be reconfigured and used by southbound traffic. The adjacent historic bridge, built in 1881, would be preserved for community use. The project also includes upgrades to intersections on either side of the bridge at Bolong, Illaroo and Bridge roads, and Pleasant Way. By managing the budget, we are able to invest in the roads that the people of the South Coast need. This project will enable people to get home sooner and safer, Mr Turnbull said. It has been secured by the ongoing advocacy of the Member for Gilmore, Ann Sudmalis. The government would seek an equal funding contribution from the state to see this important regional project delivered to the South Coast, Mr Turnbull said. The federal government has already spent $10 million on planning and development. The final business case is well progressed, the PM said, and will be assessed by Infrastructure Australia. The NSW government has invested $1.6 million in the project. FAST LANE: An artist's impression of the new Shoalhaven River bridge at Nowra. The Turnbull government will allocate $155 million to the project.

100 Adelaide Advertiser, Adelaide Section: Edition Changes - 3rd Edition Article Type: News Item Classification: Capital City Daily : 112,097 Page: 2 Printed size: cm² Market: SA Country: Australia ASR: AUD 1,800 words: 279 Item ID: Page 1 of 1 CBA loses statements of 20 million customers TENS of thousands of South Australians have been caught up in a major banking bungle with the Commonwealth Bank last night admitting it had lost historical financial statements of almost 20 million customers. The personal accounts had simply disappeared in 2016 but CBA decided at the time not to go public. According to one report, two magnetic tapes containing customer statements were scheduled for destruction by the bank in May 2016, but were lost by a subcontractor. The tapes contained customer names, addresses, account numbers and transaction details from 19.8 million accounts spanning 2000 to early The CBA said in a statement last night that they did not contain passwords, PINs or other data which could be used to enable account fraud. An independent forensic investigation ordered by CBA in 2016 and conducted by KPMG determined the most likely scenario was the tapes had been disposed of. The bank immediately put in place monitoring mechanisms to further protect customers, it said. It is thought the tapes were most likely destroyed by someone else who came across them, but that has never been confirmed. The Commonwealth Bank s Angus Sullivan told the ABC the incident was unacceptable. I want to assure our customers that we have taken the steps necessary to protect their information and we apologise for any concern this incident may cause, he said. The relevant regulators were notified in 2016 and we undertook a thorough forensic investigation, providing further updates to our regulators after its completion. CBA says it discussed the decision not to inform customers with the Office of the Australian Information Commissioner, and that the OAIC advised it would not pursue the issue further.

101 Canberra Times, Canberra Author: Julien Vincent Section: Business News Article Type: News Item Classification: Capital City Daily : 17,579 Page: 23 Printed size: cm² Market: ACT Country: Australia ASR: AUD 5,430 words: 438 Item ID: Page 1 of 1 How even greenies vote against action COMMENT Julien Vincent The vast majority of Australians care about climate change and environmental protection. These issues have been prominent enough to influence the way millions of us have voted over the past decade. But while we rarely get to the ballot box, dozens of other important votes happen on climate change each and every year. These votes are made on behalf of you and me and, frustratingly, most oppose climate change action. Just ask your super fund. Our collective retirement savings give super funds significant stakes in Australian and international companies. With that comes the right to vote on matters such as the election of directors, executive remuneration, or other resolutions put forward by the board and shareholders. Yet, when opportunities arise for super funds to support greater action from companies on climate change, more often than not they vote against it on behalf of their members. When questioned over their poor voting records, super funds often claim they do a lot behind the scenes, engaging companies they own to encourage better action on climate change. That s fine, but when a company knows at the end of the day its investors will side with the board when casting their vote, that s a pretty big bargaining chip being given away. This is another big week for shareholder resolutions on climate change. On Wednesday, Rio Tinto fended off a proposal co-filed by the Australian Centre for Corporate Responsibility, Local Government Super, the Church of England Pension Board and the Seventh Swedish National Pension Fund, calling for a review of the company s memberships of lobby groups that advocate against climate change action. The Australian Council of Superannuation Investors recommended its members vote in favour of the resolution, and Cbus and HESTA voted in favour, along with US pension fund CalPERS. The resolution received 18 per cent of the vote, a significant lash from investors typically obedient towards the board. But this left the majority of investors siding with the board to oppose the resolution. It is likely that several major Australian superannuation funds will be among them. On Thursday it s the turn of Santos and QBE. Market Forces has coordinated shareholder resolutions to both companies, asking for exceptionally conservative action on climate change. The Santos resolution calls for the company to accurately measure, disclose and reduce emissions of methane. QBE are being asked to disclose the financial risks it faces from climate change, and how it plans to manage them. Voting against climate change action exposes us to its risks. How is that in our best interest? You ll have to ask your super fund. Julien Vincent is executive director of Market Forces

102 Australian Financial Review, Australia Author: James Eyers And Jonathan Shapiro Section: Companies and Markets Article Type: News Item Classification: National : 44,635 Page: 15 Printed size: cm² Market: National Country: Australia ASR: AUD 5,178 words: 759 Item ID: Page 1 of 1 Byres puts spotlight on incentives James Eyers and Jonathan Shapiro The chair of the prudential regulator said he is more focused on how bankers are paid, rather than how much, after a scathing report he commissioned took the nation's largest bank to task for arrogance and complacency. "There's a perception that people are being paid far too much in the financial sector," the Australian Prudential Regulation Authority's Wayne Byres told an audience in Sydney on Wednesday. "We are far less focused on the absolute level and far more focused on the structure of incentives," he said in response to questions. Mr Byres said the industry damaged its reputation and "got itself into trouble" in areas "where incentives have been weighted to growth and sales". "Where incentives are more balanced or less focused on thing, then they haven't been as prevalent," he said. Mr Byres made the comments at a University of NSW event to discuss the pending introduction of new rules to govern senior banker pay and penalties known as the Banking Executive Accountability Regime. It came the day after the prudential regulator lashed the Commonwealth Bank for an overly legalistic approach towards regulation in a report that chastised the bank for overconfidence and complacency. The bank accepted an "enforceable undertaking" that would result in it holding an additional $1 billion capital while it acts on the recommendations. The board, meanwhile, is required to update APRA on how remuneration will be impacted. In his prepared remarks, Mr Byres said the financial sector was not being trusted to "do the right thing" - "and at the moment, that form of trust is taking a severe hit". However, he said Australians still trusted the banks to keep their money safe. With the CBA report revealing the nation's largest lender had a dismissive attitude towards customer complaints, Mr Byres said the extra scrutiny and heightened expectations on banks Continued p18 From page 15 Byres puts spotlight on incentives makes it all the more important to act promptly to fix mistakes and ensure executives are made accountable when problems arise. "The community will be far more likely to maintain its trust that the sector will do the right thing if it is evident there is accountability when it does not," he said at the UNSW event hosted at law firm Aliens on Wednesday morning. CBA chairman Catherine Livingstone and chief executive Matt Comyn pledged on Tuesday to adopt all 35 recommendations of the prudential inquiry to restore trust. The Banking Executive Accountability Regime - which comes into force on July 1 and will be used to ensure the CBA adheres to the enforceable undertakings announced by APRA on Tuesday - will "provide an opportunity to demonstrate to the community that accountability is actively practiced within the industry", Mr Byres said. Under BEAR, banks will have to provide "accountability maps" to APRA showing which executives have responsibility for every particular function. The prudential inquiry into CBA highlighted excessive complexity and a lack of accountability as a cause of the bank's governance failures. Treasurer Scott Morrison said on Tuesday BEAR would help fix this. "This government took action last year in last year's budget to address the very issues that are at the heart of APRA's findings here as a result of this inquiry," Mr Morrison said. 'The BEAR regime is there in place for that to now be used, not just in CBA, but in all of the major banks, to ensure that the accountability is very, very clear." Mr Byres said on Wednesday that "organisational complexity and diffused responsibility have been at the heart of many of the issues that have damaged the standing of the banking industry in recent years". He said process failures or poor decision-making had often "been the result of a lack of clear accountability for ensuring a product works sis it should, a risk is fully understood, or that a system delivers what was intended". 'To the extent that BEAR provides a catalyst to untangle that complexity and provide clear accountability for putting things right, it can only be a good thing," he said. "Regulators will play their role, but the industry needs to wholeheartedly embrace that opportunity and think beyond the BEAR necessities." After the scandal at AMP, revealed by the banking royal commission, the government said it would extend BEAR to the wealth industry. Mr Byres said the financial system was widely acknowledged as financially sound and, despite the extra scrutiny on banks, "there's no sign that the community lacks trust in the underlying financial strength of the institutions they deposit, insure and invest with".

103 Australian Financial Review, Australia Author: James Eyers Section: Companies and Markets Article Type: News Item Classification: National : 44,635 Page: 18 Printed size: cm² Market: National Country: Australia ASR: AUD 9,527 words: 773 Item ID: Page 1 of 2 CBA report to spark bank pay overhaul James Eyers Bank boards of directors must strengthen their resolve to stand up to management spin, says the prudential regulator's former head of governance, Fahmi Hosain, who predicts the prudential inquiry into Commonwealth Bank will require boards to pare financial-based performance metrics in pay schemes. Leading financial services remuneration expert Elizabeth Sheedy, of Macquarie University, agreed banker pay needed a shake-up after the damning assessment of the CBA board. She said the government could introduce laws preventing banks from paying short-term bonuses. Mr Hosain, the former head of governance, culture and remuneration at the Australian Prudential Regulation Authority, said the CBA report highlighted the complexities and challenges for boards when "management puts up a rosy picture". "It is very difficult and this report lays bare the complex operations of CBA's governance structures, risk management framework, and capabilities around data and information. It is hard for boards to draw the dots together," he said. "Boards need to contemplate and consider how are they assuring themselves they have the breadth of information given to them and are comfortable they can apply critical thinking to balance out management spin." The scathing report about die effectiveness of the CBA under former chairman David Turner said its financial success had "dulled the senses" of the board, which had displayed a lack of urgency dealing with non-financial matters. The board was also found to have insufficient rigour and urgency to hold management to account, and had a passive approach when red flags were identified by the audit committee. The report also identified an imbalance "between the Voice of finance' on the one hand, and the Voice of risk' and the 'customer voice' on the other". Mr Hosain predicted banks would be forced to change remuneration structures. "We need to think, how do we move away from the focus on returnbased metrics and the reliance on financial metrics?" he said. Professor Sheedy agreed, saying she had grown sceptical of "whether shortterm bonuses have any place in the industry at all". "I don't see how you can make them work. Balanced scorecards are clearly not working and coming up with meaningful, objective indicators is almost impossible. Risk management is a long-term venture and you can only see benefits in the long term," she said. "The only way I can see that cash bonuses will continue is for deferral to be longer term, because it is only after several years that all of the risks come out Short-term bonuses don't seem to be in any way sensitive to risk issues, so arguably do not reflect good riskmanagement practice." Writing in The Australian Financial Review yesterday, former ASX chief executive Elmer Funke Kupper warns bank boards not to rely on remuneration consultants when they redesign remuneration packages. The prudential inquiry called for the CBA board to assess remuneration outcomes for group executives "to reflect individual and collective accountability for material adverse risk management and compliance outcomes". It said remuneration outcomes had been "symptomatic of significant weaknesses in the implementation and broader oversight of the remuneration process in CBA, which have undermined the promotion of greater accountability". The inquiry panel said the CBA board had been "too tolerant of accountability being diffused, excused or simply unable to be determined. This tolerance cascaded down through senior leadership of CBA and resulted in the ineffective application of the remuneration framework". It also said the board's remuneration committee "has not provided clear guidance on its expectations of how managers should appropriately exercise their discretion when considering a reduction to remuneration for poor risk outcomes". However, it was complimentary about the efforts of chairman Catherine Livingstone to improve governance. "Significantly, the 'light hand on the tiller* of earlier years has been replaced by a firmer and more visible hand and oversight and challenge has intensified," the report said. Australian Institute of Company Directors chairman Elizabeth Proust, who is also chairman of Bank of Melbourne, told ABC Radio National yesterday the CBA report showed the previous board had a tendency to rest on the success of the bank and was not as "probing and questioning" as it should have been. "This is a wake-up call to all boards to say just being collegiate, especially with management, can lead you down a damaging path," she said. A successful, dynamic board was "one that is questioning each other, and management, one that is alert to issues that come from audit committee, and customer and staff feed."

104 Australian Financial Review, Australia Author: James Eyers Section: Companies and Markets Article Type: News Item Classification: National : 44,635 Page: 18 Printed size: cm² Market: National Country: Australia ASR: AUD 9,527 words: 773 Item ID: Page 2 of 2 Short-term bonuses don't seem to be in any way sensitive to risk issues. Associate Professor Elizabeth Sheedy Elizabeth Sheedy and Fahmi Hosain agree that banker pay, and especially bonuses, need a shake-up, PHOTO: DOMINIC LORRIMER

105 Newcastle Herald, Newcastle NSW Author: Noel Whittaker Section: General News Article Type: News Item Classification: Regional : 23,625 Page: 19 Printed size: cm² Market: NSW Country: Australia ASR: AUD 3,092 words: 528 Item ID: Page 1 of 1 care fee by about $2600 a year. I have reached my $1.6 million limit for super pension phase. I am still working. Can I still contribute after-tax monies into my accumulation fund? What happens to my employer contributions if those employer contributions cannot go into the accumulation fund? You cannot contribute non-concessional contributions to superannuation if your balance has reached $1.6 million. You or your employer can continue to make concessional contributions irrespective of the balance in your superannuation fund up to a limit of $25,000 a year from all sources. I am selling my father s home. At settlement his total cash assets will be $919,000, of which $441,000 will be paid as a refundable accommodation deposit to the age care provider. The cash balance will be $478,000, from which he will have to pay a means-tested daily care fee of about $14,490 a year [maximum $64,000]. Can you tell me what his pension per fortnight will be? Rachel Lane, from Aged Care Gurus, says: Assuming the money in the bank is all of the assets, your dad s age pension will be about $707 a fortnight and his means-tested care fee will be about $15,385 a year. It s important to understand the direct link between the means test for your dad s pension and his cost of care. A specialist financial planner could tweak the assets and increase your dad s pension to $907 a fortnight, while reducing his means-tested I m 31 and expecting to make $250,000 from the sale of a property before the sixyear CGT exemption runs out. Would I be better paying the money off my 3.88 per cent home loan or investing it in shares? If you pay the money off your home loan it would be earning a net 3.88 per cent over the long-term a good share portfolio should do better than that. But remember the name of the game is to maximise your taxdeductible debt and minimise your nondeductible debt so your best strategy may be to pay the $250,000 off your home loan and then borrow against the home to invest in shares. This would give you the best of both worlds with the interest on the loan to buy shares being fully tax-deductible. It appears from your question that you are retaining a home as your residence and selling one that is covered by the six-year capital gains tax exemption. Make sure you liaise with your accountant, because once you nominate the home you are selling as your residence, there is potential for some CGT in the future on the one you are keeping. I read your recent article wherein a couple could negate CGT by making a tax deductible super contribution. Can you reduce the tax payable on income from working and investments by doing the same? Capital gains tax is calculated by adding the net gain to your taxable income in the year the transaction is made. A tax-deductible contribution may put you in a lower tax bracket, which means you would may pay less capital gains tax. In the same way a taxdeductible contribution to super will reduce your income from working and from investments.

106 Newcastle Herald, Newcastle NSW Section: General News Article Type: News Item Classification: Regional : 23,625 Page: 19 Printed size: cm² Market: NSW Country: Australia ASR: AUD 1,187 words: 197 Item ID: Page 1 of 1 We re auctioning the house is timing an issue? The explainer MY husband (71) and I (67), both retired and receiving pensions from our respective superannuation funds, are auctioning our house on May 26 with a view to being able to use any profit for travel and also to contribute to our retirement living expenses. I understand after July 1, 2018, folks like us can contribute $300,000 each to our superannuation funds from the sale of our home. If we have a six-week period before settlement (from May 26), this will take us into the first week of July. I contacted my super fund and was advised that we could make this contribution 90 days after receipt of the money for the house, but others have nowsaid it is from the time of exchange of contracts after July 1. The proposed regulations state that the sales contract must be entered into on or after July 1, Therefore, if the ability to contribute $600,000 is important to you, it may be worthwhile postponing the auction. However, I think before you do this, you should talk to your financial adviser and satisfy yourself that an extra $600,000 in your super fund is worth the wait.

107 Newcastle Herald, Newcastle NSW Author: John Collett Section: General News Article Type: News Item Classification: Regional : 23,625 Page: 19 Printed size: cm² Market: NSW Country: Australia ASR: AUD 2,647 words: 459 Item ID: Page 1 of 1 Banks financial advice news could have been worse THE revelations at the banking royal commission concerning negligent financial advice could have been much worse if the Abbott government had managed to pull off its watering-down of consumer protections. Under the Labor government s Future of Financial Advice (FOFA) reforms, which came into effect from the middle of 2013, most commissions to financial planners were banned and planners had to put their clients interest above their own. In late 2013, the newly-elected Abbott government signalled it would amend FOFA. It wanted the requirement for clients to opt in to continuing advice every two years scrapped and wanted to remove the requirement for advisers to provide an annual fee disclosure statement to clients they had signed up before July It also wanted to allow bank tellers, planners and call-centre workers who are employees of the banks (and credit unions and building societies, for that matter) to be exempt from the ban on conflicted pay, as long as the advice was general. What remained of the FOFA reforms would apply only to advisers giving personal advice; where the adviser is supposed to give advice tailored to the personal circumstances of the client. The Abbott government said the changes were streamlining Labor s reforms and would reduce compliance costs for business as part of its campaign to reduce red tape. It would have likely crowded out the market for personal advice which, even under the government s plan to water it down, would have at least left some of FOFA s higher standards in place. It was not just those working for the banks, but agents of the banks who could have sold the banks products under general advice. There would have likely been an explosion of call centres, agencies of the banks, incentivised by commissions and bonuses. Under general advice, there s no need to take into account the personal circumstances of those being sold the financial product. It would have remained the case, as it is today, that tellers are allowed to answer simple questions from customers on straightforward products such as term deposits and general insurance, and to be rewarded with bonuses for selling them. But under the government s attempted change, all types of complex financial products, including superannuation, managed funds and life insurance, would been sold over-the-counter and tellers rewarded for selling them, as would agents of the banks. When Fairfax Media explained the implications, opposition among the public, led by seniors groups, soon mounted. Eventually, all of the changes were blocked in the Senate and FOFA was not watereddown after all. Crucially, the gate was left locked on the flogging of products under general advice. It was not a good look, especially as the Coalition went on to resist the calls for a banking royal commission for two years.

108 Australian Financial Review, Australia Author: Alice Uribe Section: Companies and Markets Article Type: News Item Classification: National : 44,635 Page: 19 Printed size: cm² Market: National Country: Australia ASR: AUD 7,079 words: 568 Item ID: Page 1 of 2 Wilkins has big repair job at AMP Alice Uribe There is talk that AMP's new executive chairman Mike Wilkins has too much on his plate with a cluster of board seats, but one proxy adviser says it's not the number of spots at the board table that should be the primary concern. "There is no hard and fast rule on the ideal number of directorships [a person should have]," Dean Paatsch a director of Ownership Matters, a proxy and governance risk adviser said. "It depends on the person, but the big trouble people run into is when there is trouble at more than one company. That's when your workload becomes unmanageable". According to Ownership Matters, of the 1721 directors that sit on ASX boards, one - Robert Millner - has seven positions, eight directors have five and 126 have three seats. 'Tour ability to be on top of everything when there are major issues that are emerging is very, very difficult It's right there is a focus on overboarding- no question about that" said Mr Paatsch, without commenting on Mr Wilkins directly. A respected former LAG chief executive, Mr Wilkins had already taken on the role of AMP's interim chief executive after Craig Meller was dispensed with and became executive chairman of the under-fire wealth manager when former chairman Catherine Brenner finally resigned on Monday. Market watchers said he had his work cut out for him overseeing a complete cultural transformation and potential sweeping divestment program and it is understood he has been locked in crisis meetings with institutional investors ahead of next week's annual meeting. Mr Wilkins is overseeing the recruitment of a CEO too. Mr Wilkins also sits on the board of ASX-listed health insurer Medibank Private, which despite being lauded by investors for being a well-run company with a high-performing boss at the helm, still faces structural headwinds and shrinking margins. Of more immediate concern is $13.4 billion insurer QBE Insurance Group which is holding its annual meeting in Sydney on Thursday. The meeting is its first since Pat Regan took over from former CEO John Neal after mounting shareholder frustration over successive downgrades had him forced out The global insurer is also staring down a shareholder resolution compelling the company to disclose climate risk, with at least 10 per cent of shareholders expected to vote in favour of the resolution coordinated by environmental finance group Market Forces and co-filed by $10 billion industry super fund Local Government Super. This week Mr Regan bowed to shareholder pressure regarding the size of his pay packet by taking a 25 per cent hit to his bonus. Vas Kolesnikoff, an executive director at another proxy firm International Shareholder Services (ISS), said although Mr Wilkins' is only AMP's CEO on an interim basis he may still reconsider his workload. "When you've got this many commitments then something has to give," he said. "I would suspect and potentially expect Mike Wilkins to make some sort of announcements about his other board roles". A QBE spokesman declined to comment on speculation Mr Wilkins would step down from the board, while a Medibank spokeswoman said the board did not see Mr Wilkins' other board commitments as a problem because they are a "short-term measure". AMP also declined to comment. There is no hard and fast rule on the ideal number of directorships. Dean Paatsch, Ownership Matters

109 Australian Financial Review, Australia Author: Alice Uribe Section: Companies and Markets Article Type: News Item Classification: National : 44,635 Page: 19 Printed size: cm² Market: National Country: Australia ASR: AUD 7,079 words: 568 Item ID: Page 2 of 2 New AMP boss Mike Wilkins has been locked in crisis meetings, PHOTO: ANNA KUCERA

110 Australian Financial Review, Australia Author: Joyce Moullakis Section: Companies and Markets Article Type: News Item Classification: National : 44,635 Page: 25 Printed size: cm² Market: National Country: Australia ASR: AUD 7,544 words: 510 Item ID: Page 1 of 2 Challenger shakes off RC lash, earnings impact Joyce Moullakis Challenger chief executive Brian Benari says the annuities giant and fund manager's products and distribution are broad enough to' protect against any industry fallout from the banking royal commission. Mr Benari told the Macquarie Australia Conference while Challenger had lodged a submission to the royal commission, the company had not been asked for further information or been called up to front the hearings. "We have a very diversified base of distribution that sits out there, distribution with other groups and also independent distribution," he said when asked about potential reforms that could stem from the royal commission and a potential lash from the scandals it has uncovered. "We've sought to diversify by product and distribution footprint over the last five years. It's very diversified and I don't see any material impact from this." Challenger is Australia's dominant annuities provider. The company has also been increasing its distribution footprint via deals and partnerships with group's including AMP, Commonwealth Bank of Australia's Colonial and Westpac Banking Corp's BT Panorama platform. Annuities are a retirement product that pay guaranteed income for a set period of time. Mr Benari said he was "very disappointed" about revelations raised at the commission hearings and how they reflected on the financial services industry. "In my view it has been very surprising, what we've heard," he said. Challenger is also awaiting an update from the federal government on new retirement income rules and how social security means testing would work for products including deferred lifetime annuities, or DLAs. "When we get clarity on those rules, and we are hoping to get that on budget day, what that means is we can understand exactly how DLAs will be treated, and I suspect it will be six months before those rules are put in place," Mr Benari said. Challenger is also expecting more industry consultation on reforms to create comprehensive income products for retirement Challenger entered the Japanese annuities market in 2016, inking a deal with the county's largest general insurer, Mitsui Sumitomo Primary Life Insurance Company, primarily to sell Australian dollar-denominated annuities to Japan. Analysts at Morgan Stanley recently told clients there were risks for Challenger's Japan sales outlook, if the Australian dollar and green yield trends continued. Mr Benari's speech also cautioned policy makers and the industry that in its current form the superannuation system was a risky proposition for many retirees. "We firmly believe that Australian retirees are overexposed to risks in retirement. If a global financial crisis was to happen today, on average it would wipe $65,000 off the average super savings of those who had just retired," he told the conference. Challenger thinks Australia's $2.6 trillion superannuation system is not yet mature, despite its rapid growth. "The weight of money in the retirement phase has now reached a level where large funds could spin-off their retired members into a separate fund, and this new fund would still be a major super fund in its own right" Mr Benari said.

111 Australian Financial Review, Australia Author: Joyce Moullakis Section: Companies and Markets Article Type: News Item Classification: National : 44,635 Page: 25 Printed size: cm² Market: National Country: Australia ASR: AUD 7,544 words: 510 Item ID: Page 2 of 2 Brian Benari was "very disappointed" about revelations raised at the royal commission hearings. PHOTO: DOMINICLORRIMER

112 Australian Financial Review, Australia Author: Su-Lin Tan Section: Property Article Type: News Item Classification: National : 44,635 Page: 40 Printed size: cm² Market: National Country: Australia ASR: AUD 4,834 words: 394 Item ID: Page 1 of 1 Cbus confident its Epping apartments will sell well Su-LinTan An artist's impression of The Langston, Cbus Property's future project in Epping. Developer Cbus Property has unveiled plans for a $500 million mixed-use apartment project in Epping, on Sydney's north shore, four years after first acquiring the strategic site in the growing suburb, and in the midst of a slowing apartment market The 6900sq m landholding at Langston Place, 100 metres from Epping train station and future metro stop, will yield a mixed use development The Langston with 463 premium one- to three-bedroom apartments across three high-density towers of between 19 to 25 storeys. Cbus will join a slew of developers building apartments in Epping, including Poly Australia and Loftex. It will begin construction of the project in 2019, and it will also include 1681sqm of retail space and 1921sqm of open space, laneways and pedestrian links. There will be cafes, restaurants, a providore, a small format supermarket and five to six retailers. Architectural firm Architectu and landscape architects Arcadia will be involved in the project, which offers views of the Blue Mountains and the Sydney CBD. "The future Epping Town Centre will deliver an increase in housing capacity of around 3750 new homes within a 10-minute walk of the train station, as well as many new employment opportunities and local services," Cbus chief executive Adrian Pozzo said. There were concerns of oversupply of apartments in Epping - popular with foreign buyers - particularly with the number of rebates offered to buyers. The suburb has been the target of investor-type one- to two-bedroom apartments and these could now be in surplus given the departure of investors in the market The family-oriented suburb generally preferred larger homes, such as three-bedroom apartments, research group Riskwise said. But Mr Pozzo was confident that the quality of the project and, importantly, its proximity to the train station would trump these headwinds. "At The Langston, because of our proximity to the train station, the extensive views and premium apartments, we're expecting solid sales and a healthy blend of buyers," he said. "We believe The Langston is unlike anything else in the Epping market and we are confident buyers will recognise its unique location and quality." Cbus Property was in the scrum to snap up the site in 2014 when site sales were hot and successfully acquired the property from owner Phillip Wolanski's Denwol Group for $85 million.

113 Daily Telegraph, Sydney Section: Edition Changes - 3rd Edition Article Type: News Item Classification: Capital City Daily : 232,067 Page: 5 Printed size: 92.00cm² Market: NSW Country: Australia ASR: AUD 4,347 words: 204 Item ID: Page 1 of 1 CBA lost 20 million records THE Commonwealth Bank last night admitted it lost historical financial statements from nearly 20 million accounts two years ago but decided not to alert customers to the unacceptable privacy incident. The statements contained customer names, addresses, account numbers and transaction details from 2000 to early They did not contain passwords, PINs or other data which could be used to enable account fraud. The customer statements were contained on two magnetic tapes which were lost by a subcontractor. CBA acting group executive retail banking services Angus Sullivan last night called the privacy incident not acceptable but said there was no evidence of any customer information being compromised. He said an independent forensic investigation two years ago found the most likely scenario was that the tapes had been disposed of. The relevant regulators were notified in 2016 and we undertook a thorough forensic investigation, providing further updates to our regulators after its completion, he said. We also put in place heightened monitoring of customer accounts to ensure no data compromise had occurred. We concluded, given the results of the investigation, that we would not alert customers. Ongoing monitoring of the 19.8 million customer accounts involved remained in place as a precaution, the bank said.

114 Australian Financial Review, Australia Author: Duncan Hughes Section: Property Article Type: News Item Classification: National : 44,635 Page: 42 Printed size: cm² Market: National Country: Australia ASR: AUD 9,021 words: 721 Item ID: Page 1 of 2 More households seek to refinance Duncan Hughes The number of struggling borrowers seeking mortgage refinance has doubled to more than 30 per cent as lenders raise rates and fees, and toughen scrutiny of incomes and expenses, according to a new analysis. Mortgage brokers, who act as intermediaries between lenders and borrowers, claim lenders are "throttling " amid increased pressure from regulators and fear of exposure by the Hayne royal commission. Lenders, including ME Bank and MyState, are increasing lending rates in response to higher compliance and funding costs with more expected to follow despite the RBA holding the cash rates at record lows. Richard Holden, professor of economics at the UNSW Business School, warns loans could become even harder to get as lenders respond to growing funding and regulatory pressures. "I think that's a definite possibility," Professor Holding said. "The increased capital charges - at least for Commonwealth Bank of Australia - plus a general risk aversion on the part of executives seems likely to lead to further tightening of underwriting standards and a possible increase in loan spreads," he said. "Wholesale funding costs are rising in the US, so I would look for a potential increase in rates here despite the RBA keeping the cash rate on hold. And I also think a general pull in lending, which is already happening, will likely continue." MyState, a listed financial services group, is the latest to raise rates by 20 basis points for all principal and interest loans above 80 per cent loan to value ratio and all interest-only loans. ME Bank, which is owned by 29 industry super funds, is raising rates for existing property borrowers by up to 16 basis points in response to rising funding and compliance costs. The benchmark 10-year US bond rate is moving higher following recent minor falls, increasing funding costs for most lenders. The Reserve Bank of Australia is warning the next cash rate move is likely to be an increase, rather than a decrease, and is warning borrowers to be ready for the shock of the first rise in seven years. The big four banks, which are responsible for 70 per cent of loans, are moving to tighten underwriting standards by much more forensic analysis of expenses, particularly around the standard Household Expenditure Model (HEM) which has been critically discussed by the royal commission. For example, Westpac, the nation's second largest lender, which includes Bank of Melbourne, BankSA and St George Bank, said it will drill much more deeply into borrowers' spending to better understand their living expenses, commitments, capacity to repay and verify documents. It has increased the number of criteria from six to 13. The group has appointed Equifax, Experian and Mion, formerly Dun and Bradstreet Australia and New Zealand, some of the world's major providers of credit reports and credit scores, to help screen applications in response to government and regulatory pressure to boost loan scrutiny. Lenders are also intensifying analysis of borrowers' income and reducing the amount of income from sources such as rental properties, bonuses and commission payments. It is also to stop "liar loans" issued on exaggerated income and understated expenses that have the potential of undermining underwriting standards and increasing vulnerability to sharp economic corrections. "Lenders are making sure they dot every T and cross every 't' from borrowers and putting the ruler across every broker application," said Steve Mickenbecker, group executive for financial services at Canstar, which monitors rates and charges for financial service products. In addition, many lenders are switching from a ratio of loan to income, which measured their debt as a percentage of disposable income, to the more rigorous loan to debt, which monitors debt from all sources, such as credit cards and school fees. Martin North, principal of Digital Finance Analytics, said the number of troubled households seeking to refinance has increased from about 15 per cent to nearly one-third of refinancing borrowers. There are estimated to be 550,000 households seeking to refinance in the next three years, an increase from 480,000 from last year, DFA analysis reveals. Of those nearly one-in-three are having difficulty finding alternative finance. Key points Lenders are "throttling " amid increased pressure from regulators. Banks say they will drill much more deeply into borrowers' spending.

115 Australian Financial Review, Australia Author: Duncan Hughes Section: Property Article Type: News Item Classification: National : 44,635 Page: 42 Printed size: cm² Market: National Country: Australia ASR: AUD 9,021 words: 721 Item ID: Page 2 of 2 Homeowners are feeling the pinch as lenders increase rates due to higher compliance costs, PHOTO: TAMARA VONINSKI

116 Canberra Times, Canberra Author: Allan Fels Section: General News Article Type: News Item Classification: Capital City Daily : 17,579 Page: 16 Printed size: cm² Market: ACT Country: Australia ASR: AUD 10,988 words: 761 Item ID: Page 1 of 2 Hayne commission needs more time to reach the rotten core plus an interim report with teeth Allan Fels Tuesday s scathing report on the Commonwealth Bank, coming hard on the heels of the banking royal commission s shocking revelations over the past few weeks, underscores the problem facing Commissioner Kenneth Hayne right from the outset. How on earth can a one-year investigation, led by just one commissioner, deal with all that s rotten in Australia s financial services industry? The child sexual abuse royal commission, with six commissioners, took five years; the trade unions royal commission had almost two years. In both cases, the government extended the final report deadline. A similar extension for the banking royal commission is vital with one major proviso outlined below. This seems preferable to handing over a host of unfinished investigations to the government, which may not have the will, expertise, resources, and coordination capability to continue dirt-digging and devising strong responses in a timely way in an election year. Commissioner Hayne needs at least another year or two beyond February 2019 to have any hope of tackling the deep-seated ethical, structural and cultural issues revealed not just by his commission, but over the past four years by countless media reports and parliamentary inquiries. The burden of the current oneyear deadline was highlighted by the cracking pace set in the nine days of public hearings in April, covering financial advice. The Commonwealth Bank, in particular, got off very lightly. Despite a string of scandals over the past few years involving fraudulent financial planners, a morally bankrupt life insurance division and other unethical behaviour, only two Commonwealth Bank employees were grilled, mainly about fees for no service, over just six hours. Where were the top executives responsible for these scandals, or the whistleblowers who brought them to light? As Tuesday s report from the Australian Prudential Regulation Authority makes clear, the Commonwealth Bank s complacency and lack of accountability is widespread and emanates from the top down, leading to multiple regulatory breaches. This requires weeks of digging by the royal commission, not hours. The Australian Securities and Investments Commission which could occupy an entire royal commission to investigate its weak and ineffective regulation coughed up just two witnesses last week, for a total of three hours. Only two victims of disastrous financial planning recommendations told their stories at the royal commission s public hearings, despite evidence that thousands have been ripped off. And only two planners and two industry representatives were called up, though it s clear the problems are deep and systemic. Clayton Utz, which signed off on a so-called independent report that was redrafted 25 times at AMP s request, escaped giving evidence at all, as did AMP legal counsel Brian Salter (although AMP sacked him on Monday). And while AMP has also sacked its CEO, Craig Mellor, and chairman Catherine Brenner eventually resigned, neither they nor any other directors or chief executives were compelled to give evidence. The tight deadline forced a similar once-over-lightly approach to the commission s nine days of public hearings into consumer lending in March. And we can expect the same when the third round of public hearings, into small and medium business, begins on May 21. Racing through such complex issues, on a comparatively small ($75 million) budget, is disquieting. The royal commission has so far done a good job of uncovering evidence that has already had a profound effect on public thinking. But there are plenty more big institutions to delve into Macquarie, Suncorp, IOOF, to name a few and the questions the commission must grapple with, including toxic cultures, abolishing commissions, adequate compensation schemes and structural separation, are big ones. And the proviso, if the royal commission gets an extension? First and foremost, some earlier action is needed. We simply cannot wait two or three more years for the government to act. An interim report with real teeth would overcome this dilemma. We need strong, early recommendations that go well beyond higher fines. The interim report, due at the end of September, needs to address and

117 Canberra Times, Canberra Author: Allan Fels Section: General News Article Type: News Item Classification: Capital City Daily : 17,579 Page: 16 Printed size: cm² Market: ACT Country: Australia ASR: AUD 10,988 words: 761 Item ID: Page 2 of 2 early next year resolve some of the bigger issues, well before next year s federal election when politicians will be distracted. We need an entirely new regulatory framework for an industry that has gone badly wrong and can t be trusted to fix itself. That s a huge job. Let s hope Commissioner Hayne can come up with some solutions soon and that he has no plans for the next few years. Where were the top executives responsible for these scandals, or the whistleblowers who brought them to light? Allan Fels was chairman of the Australian Competition and Consumer Commission from its inception in 1995 until June 2003.

118 Launceston Examiner, Launceston TAS Section: Domain Article Type: News Item Classification: Regional : 17,631 Page: 4 Printed size: cm² Market: TAS Country: Australia ASR: AUD 2,371 words: 435 Item ID: Page 1 of 2 Selection service needs clarity REAL estate agent selection agencies should be treated the same as financial advisers and directly renumerated by the vendor, according to the Real Estate Institute of Australia (REIA). In a submission to the Royal Commission into Misconduct in the Banking Industry REIA President Malcolm Gunning said there has been a proliferation of businesses established to assist vendors selling their homes by choosing an agent for them. These businesses portray themselves as an impartial consumer advocate offering a free service to choose the most suitable agent for marketing their property, Mr Gunning said. On the surface this appears very attractive, the reality is however very different. Only those agents that are registered, or are, in some way associated with the selection service will be referred to the vendor. The agent selection service is nothing more than a listing service for agents who subscribe to the service, he said. Mr Gunning said while the service appears free to the vendor, the selection service is remunerated by the agent that it recommends. The selection services charge the agent a fee of around 20 per cent of their commission and the agent appointed will regularly seek a higher commission to off-set the costs of the selection service, he said. The vendor thus pays more and does not necessarily have the most appropriate agent, Mr Gunning said. In February of this year the Commonwealth Bank entered into a relationship with one of these selection services - LocalAgentFinder. It is disappointing that the Commonwealth Bank took this step knowing the obligations of financial advisers, including that they be transparently remunerated by the client, Mr Gunning said. Whilst REIA supports assisting vendors to select the agent that best responds to the vendor s specific needs when the service provider is remunerated by the agent that they select, there is a conflict of interest which should be addressed. Just as financial advisers are required to be remunerated by their client rather than the investment house where client s money is invested, REIA believes agent selection services should be remunerated transparently by the vendor, Mr Gunning said. REIA is the national professional association for Australia s real estate sector. It is a politically non-aligned organisation that provides research and advice to the Federal Government, Opposition, professional members of the real estate sector, media and the public on a range of issues affecting the property market.

119 Launceston Examiner, Launceston TAS Section: Domain Article Type: News Item Classification: Regional : 17,631 Page: 4 Printed size: cm² Market: TAS Country: Australia ASR: AUD 2,371 words: 435 Item ID: Page 2 of 2 Behind the scenes: The selection services charge the agent a fee of around 20 per cent of their commission and the agent appointed will regularly seek a higher commission to off-set the costs of the selection service, Mr Gunning said.

120 News Mail, Bundaberg QLD Author: John Dagge Section: General News Article Type: News Item Classification: Regional : 6,176 Page: 21 Printed size: cm² Market: QLD Country: Australia ASR: AUD 229 words: 497 Item ID: Page 1 of 1 CBA has fallen from grace JOHN DAGGE COMMONWEALTH Bank chair Catherine Livingstone has defended selecting an internal candidate to run the bank after the industry regulator slammed its culture as insular, complacent and indifferent to customer mistreatment. And new CBA chief Matt Comyn will forgo $2.2 million in short-term bonuses this year in the wake of the watchdog s stinging rebuke. The nation s biggest lender has also been ordered by the Australian Prudential Regulation Authority to top up its capital levels by $1 billion until it has improved its governance practices. Federal Treasurer Scott Morrison said he expected more CBA board directors and executives to resign following the release of the damning report. A number of board members and executives have already gone, he said. My understanding is there will be others who will be leaving, and that s what I expect. The banking regulator s report, released on Tuesday, found a succession of bumper profits had dulled the senses of CBA management to bad behaviour. Executives were unaccountable for poor work practices and the board did not challenge them when problems emerged. The bank was complacent, insular, did not learn from past mistakes and had a tin ear to external criticism, the report concluded, adding that CBA has fallen from grace. Its remuneration framework had little sting for senior managers who oversaw poor customer outcomes and rewarded staff for engaging in activities that did not necessarily produce good customer outcomes. Decision making processes were complex and bureaucratic and favoured collegiality and collaboration over decisiveness and effective outcomes. APRA started investigating the bank s culture and governance in August following a string of scandals including allegations it breached anti-money laundering laws more than 50,000 times. Mr Comyn, who previously ran its retail banking division, took over the top management job last month. He has spent the bulk of his career at the CBA, and the decision to appoint an internal candidate instead of signalling a fresh start by hiring an outsider surprised many. Ms Livingstone on Tuesday said the report strengthened the case for elevating Mr Comyn to the chief executive position given his hands-on knowledge of the bank. Mr Comyn had also stepped up and taken responsibility for shortcomings identified when the nation s dirty-money watchdog, the Australian Transaction Reports and Analysis Centre, last year accused it of repeatedly breaching anti-money laundering laws, Ms Livingstone said. Matt has an intimate knowledge of the bank and has demonstrated he is someone who gets things done, she said. Mr Comyn, who is still eligible to receive long-term bonuses worth up to $4 million this year, said the APRA report was clear, insightful and confronting. Both Mr Comyn and Ms Livingstone pushed at Mr Morrison s suggestion more heads needed to roll, with Mr Comyn saying there had already been departures since the report was commissioned. Ms Livingstone said the bank was in the middle of an intensive process of board renewal and it was important to balance the pace of change with the need to retain institutional memory.

121 News Mail, Bundaberg QLD Author: Shane Jones Section: General News Article Type: News Item Classification: Regional : 6,176 Page: 31 Printed size: cm² Market: QLD Country: Australia ASR: AUD 359 words: 352 Item ID: Page 1 of 2 Bundy to battle bush New format boost for trainers SHANE JONES shane.jones@news-mail.com.au RACING: A new initiative in Bundaberg could provide a large windfall for local trainers. This weekend s AustSafe Super Charity Race Day will feature the first ever Battle of the Bush in the Rum City. The concept, run by Racing Queensland, aims to promote regional racing and provide a chance for horses and trainers to compete at a higher level. The Battle of the Bush will comprise 16 qualifying races with the top three in each qualifying for a final worth $100,000 in prize money at the Tattersall s Tiara Day at Doomben on June 23. Bundaberg is hosting the third qualifier after Cunnamulla and Emerald held the first two last month. This is a new initiative from Racing Queensland, Bundaberg Race Club race day co-ordinator Shanyn Limpus said. With the extra prize money up for grabs I just think it is something great for Bundaberg. And for non-tab race clubs like Bundaberg to have this, you have to be here on Saturday to come and see it. Limpus said the first event had already attracted plenty of interest from trainers around the region. It has also provided Bundy trainers with a perfect chance to qualify without having to travel too far. We ve got 10 nominations for the race. Four of those are from local trainer Darryl Gardiner, Limpus said. And I think he s in with a good chance of winning that one. If someone like Darryl can get in with this one then he doesn t need to travel anywhere else to qualify. Limpus said the race could become a permanent part of the Bundaberg racing calendar. (Racing Queensland) made a commitment for the next few years for this, she said. There are long-term plans for the Battle of the Bush. The race will be race five in Saturday s program.

122 News Mail, Bundaberg QLD Author: Shane Jones Section: General News Article Type: News Item Classification: Regional : 6,176 Page: 31 Printed size: cm² Market: QLD Country: Australia ASR: AUD 359 words: 352 Item ID: Page 2 of 2 HORSING AROUND: Austsafe Super regional manager for Central Queensland Tony O'Mara with Bundaberg Racing Club's Shanyn Limpus get friendly with one of the horses in the stable at Thabeban Park. This weekend s meet will have the first Battle of the Bush race for local trainers. Photo: Shane Jones