Frydenberg not for turning on responsible lending rollback
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Treasurer Josh Frydenberg has pledged to push on with the Coalitionâs attempt to scrap responsible lending laws, seeking a deal from the Senate crossbench despite strong opposition from Pauline Hanson.
The One Nation leader this week told
Dominic Lorrimer
Senator Hansonâs opposition signals poor prospects for the bill in the Senate, where the government requires three crossbench votes to pass legislation.
Already Tasmanian independent Jacqui Lambie has said she opposes the deregulation attempt, which the government says will encourage the flow of loans and boost Australiaâs COVID-19 economic recovery.
“The choice heatmap is set to highlight in bright red precisely which multi-sector products are charging the highest fees or have the poorest investment performance. So, all trustees would be wise to be taking a close look now at the outcomes they are delivering for their choice members and taking proactive steps to fix any identified weaknesses,” she said.
“Another area where we would like to see numbers ticking down is the number of funds, products and investment options,” Rowell said.
“APRA has been pushing hard for several years for more fund mergers. This isn’t simply about weeding out persistent underperformers, or making the sector easier to navigate for members – although both are important. It’s also about scale.
Rowell openly stated that some of the current mergers being discussed were not to APRA’s liking.
“Over the past eight years, about 70 APRA-regulated funds have finalised mergers, and there are currently around a dozen potential mergers under consideration that we know of,” she said. “While this is welcome, we’re not convinced all of these mergers are producing a new entity that has either the governance capability or the scale to be sustainable over the long-term.”
“The emerging industry view seems to be that any fund with less than around $30 billion in assets under management is increasingly going to be uncompetitive against the so-called ‘mega-funds’,” she said.
UK regulator tells neobanks not to liken themselves to banks
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The UK’s Financial Conduct Authority (FCA)
warned the chief executives of neobanks in a Tuesday letter to avoid comparing their upstart companies with licensed banks, voicing concern that consumers may think the challengers’ offerings have the same risk profiles as those from established players. Within six weeks, fintechs that operate under an e-money license such as Revolut must notify customers about how protections they offer are different from licensed banks’, such as a lack of Financial Services Compensation Scheme
The FCA’s warning is the latest case of regulators tightening oversight of neobanks.