Day 495: 'Woeful misconduct'
Counting the days since the banking royal commission was established.
Good afternoon, and welcome to day 495.
Today in summary: IOOF is again in trouble with APRA; new research reveals WA and Queensland have the largest gender gaps in superannuation savings; and Macquarie University research shows women temper overconfident male corporate behaviour.
-- Alex
@AlexESampson
Current banker panic level: 😥🤦🏼♀️🙅🏽
Please don’t keep The Inquisition to yourself. Forward this email to your colleagues and encourage them to sign up for free here.
IOOF is again in trouble with prudential regulator APRA. The embattled financial services group has breached license conditions by failing to meet a deadline set by a special office to oversee its superannuation operations. APRA gave IOOF new license conditions in December 2018, including legal action to ban key IOOF executives from the super industry for “for failing to act in the best interests of superannuation members”.
The independent reviewer found the new conditions had not been implemented from March 31, as required, and remained “in progress”. The SMH is reporting such notices are often a “prelude for regulatory directives or even court action” and could affect the financial services giant’s A$1 billion acquisition of ANZ's pensions and investments business. IOOF advised the ASX it would not dispute the notice.
The Australian | AFR | SMH
New research — commissioned by Women in Super — has revealed Western Australia and Queensland are the states with the largest gender gap in superannuation savings. Females in the two states had an average super balance between 34-39% less than their male counterparts. The group said the income differences were amplified by superannuation tax settings which penalised low income earners and compounded over a lifetime.
Women in Super national chair Cate Wood said:
“Better policy is needed if we are to make a difference to the retirement outcomes of all Australian women. We have tinkered around the edges for too long. It is time to implement structural changes that deliver real improvements for women.”
Fresh research from Macquarie University’s behavioural economics team supports the idea that having more women in senior management positions leads to better financial systems. The research shows women are more prudent and cautious and they temper overconfident male decision-making. The AFR is reporting other academic experts say the idea may over-simplify the problem and its solution.
🔥🔥🔥
Today’s burn prize: An unnamed senior banker
“He’s done a great job at RBS, working in a messy, complex, highly politicised organisation for five to six years and he’s proved his resilience. Compared to all that, it would be a walk in the park for him to go to NAB.”
The banker was discussing whispers that outgoing Royal Bank of Scotland chief executive Ross McEwan is in line to become NAB's next boss.
The Commentariat
AFR columnist Karen Maley writes AMP's annual general meeting next week is likely to be another fiery one. Maley argues that shareholders are expected to vent their fury over AMP’s “woeful misconduct” revealed during the royal commission, the wealth manager’s poorly performing share price and the controversial A$3.3 billion sale of its life insurance business to UK-based Resolution Life.
“There's still no clear answer to the question fascinating corporate Australia: how far will dissident institutional shareholders go in their attempt to dislodge chairman David Murray and several of his fellow directors.”
This is an introductory service while we’re building a comprehensive daily paid online publication, coming soon.
We’re not here to offer opinion, simply to cut through the noise, and help you make sense of the emerging policy and market trends you need to be across. We call it pure intel. You can read more about us here.