ALLIANZ AUSTRALIA  has confirmed that it has entered into an enforceable undertaking (EU) with the Australian Prudential Regulation Authority (APRA) to complete the current program of work in relation to Allianz Australia’s risk culture and governance.

This matter was considered as part of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and was the subject of a referral by the Commissioner to APRA.

Working with APRA, Allianz Australia said it recognised the need for reform and has embarked on a significant program of work to enhance its culture, conduct and governance. This involved a significant investment in Allianz Australia’s risk management, compliance, and corporate governance and conduct functions, the company reported.

Allianz SE, Allianz Australia’s parent company, recognised that it did not meet APRA’s expectations for robust oversight by an offshore parent of an APRA-regulated Australian insurance company and has taken vigorous measures to improve governance at its subsidiary, using its role as the ultimate parent of Allianz Australia to support Allianz Australia’s efforts to ensure that the program of reform is delivered.

Allianz Australia noted that its progress in implementing this program underpinned APRA’s decision in December 2020 to reduce from $250 million to $150 million the additional capital requirement applied to Allianz Australia in response to its Risk Governance Self Assessment.

Allianz Australia acknowledged APRA’s view that the effective implementation of the remainder of the program of work would be key to the removal of the remaining $150 million of additional capital.

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THE Queensland Resources Council (QRC) has welcomed the adoption of a new initiative to promote excellence across the sector’s commitments to safety, environment, First Nations and broader community engagement.

QRC chief executive Ian Macfarlane said that the Environment, Social and Governance (ESG) initiative, 'Towards Sustainable Mining' (TSM) was developed by the Mining Association of Canada and is being adopted in Australia through the Minerals Council of Australia (MCA).

“The Queensland resources sector and the 420,000 men and women working in it or because of it have a lot to be proud of,” Mr Macfarlane said.

“Working with our communities and governments, the resources sector delivered more than $82 billion in economic prosperity to Queensland last year.

“That’s an injection of more than $224 million into the Queensland economy every day.

“Critically, we are the largest per-capita employer of Aboriginal and Torres Strait Islander people in Queensland, with over 4 percent of our workforce identifying as Indigenous, the highest rate of any private sector, and on par with the representation of Indigenous people in the broader Queensland community.”

Mr Macfarlane said Queensland’s resources sector also worked with 15,200 local businesses and supported more than 1200 community organisations.

“We are delivering the energy mix for Queensland, the rest of the Australia and the world,” he said.

“Queensland has globally significant reserves of coal, gas and metals that are so essential for power generation, advanced manufacturing and establishing renewable energy, battery storage, electric vehicles and pioneering hydrogen.”

Mr Macfarlane said the Queensland resources sector worked within a comprehensive legislative framework, including transparent environmental impact statement assessment and approval processes and world-leading financial assurance laws. 

Click here to view Minerals Council of Australia and the Mining Association of Canada statement

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THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) will hold a public hearing this week for its Review of the Surveillance Legislation Amendment (Identify and Disrupt) Bill 2020.

The Bill review was requested by the Minister for Home Affairs in a letter to the Committee.

Committee chair Senator James Paterson said, "The committee will consider three new powers proposed in the Bill for the AFP and the ACIC. They are:

• Data disruption warrants to enable the AFP and the ACIC to disrupt data by modifying, adding, copying or deleting in order to frustrate the commission of serious offences online;
• Network activity warrants to allow agencies to collect intelligence on serious criminal activity being conducted by criminal networks; and
• Account takeover warrants to provide the AFP and the ACIC with the ability to take control of a person’s online account for the purposes of gathering evidence to further a criminal investigation.’

Due to COVID-19 restrictions, teleconference and video conference facilities may be used to connect witnesses to committee members. The hearings will be broadcast live at aph.gov.au/live.

Public hearing details

Wednesday, 10 March 2021
10am–5pm (AEDT)
Committee Room 2R1, Parliament House, Canberra

A program for the hearing can be found on the committee’s website.

Further information on the inquiry can be obtained from the Committee’s website.

LEADING mortgage aggregator Finsure Group has formed a new partnership with software provider Drive IQ Technology to boost the digital asset finance offering to its fast-growing broker network.

Finsure general manager for aggregation, Simon Bednar, said the Drive IQ Technology platform provides a simple, automated end-to-end finance application process that fully addresses Best Interest Duty (BID) requirements.

“The Drive IQ Technology platform is 100 per cent compliant with National Consumer Credit Protection (NCCP) regulations and will assist our brokers wanting to focus more on the asset finance market,” Mr Bednar said.

“This partnership will deliver sophisticated underwriting and funding functionality, automated loan origination and improved transaction speed for the Finsure broker network, which is approaching 2,000 brokers.

“Drive IQ Technology’s proprietary system facilitates the seamless capture of customer data, servicing, credit file review and product comparison during a single customer interaction.”

Drive IQ Technology co-founder Simon Penhaligon said the COVID-19 pandemic has prompted an accelerated drive towards digitalisation for the auto and asset finance industry.

“The extension of BID legislation into the asset space has also been unsettling for asset brokers who may only have a handful of accreditations,” he said.

“Finsure's decision to partner with us has ensured their brokers can conduct business with confidence.”

Grant Clayton, co-founder of Drive IQ Technology, said of the partnership: "We are thrilled at the opportunity to work with Finsure and for the confidence they have shown in our technology.

"The implementation helps to strengthen our position in the asset finance space."

About Finsure

Finsure is a growing Australian retail finance brokerage whose advisers are experts in action, passionate and independent. Finsure in 2018 merged with ASX-listed bank Goldfields Money Limited (now BNK Banking Corporation) to create a truly scalable digital challenger bank focused on providing lending solutions for Australian consumers via broker distribution. 

About Drive IQ

Drive IQ Technology has become the preferred digital platform used by asset finance brokers Australia wide. Built to simplify and streamline asset finance, the online system utilises algorithms to automate processes and digitise data. With product and policies from over 45 lenders built into the platform’s back end, access to the system means users are able to place more opportunities than ever before.

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THE EXTENSION of the Federal Government’s 50 percent apprentice and trainee wage subsidy will provide new job opportunities in the industry that is spearheading economic recovery.

"The $1.2 billion extension of the Boosting Apprenticeship Commencements (BAC) scheme is will also be a boost for economic recovery,” Denita Wawn, CEO of Master Builders Australia said.

“Governments around the country are harnessing the building and construction industry’s huge economic multiplier effect to accelerate the build to economic recovery. The extension of BAC will give employers confidence to take on new apprentices and trainees to help meet future demand for skills.

“Master Builders Australia called for the extension of employer support to take on apprentices and trainees in our Pre-Budget Submission especially given the major success of the program so far,” Ms Wawn said.

“Making the extended program demand driven is a good move that will support more people to take up pathways to careers in our industry as it leads the build to economic recovery."

www.masterbuilders.com.au

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FIVE of Australia’s largest financial advice industry associations have condemned an increase in financial adviser licence fees as “shameful” and called for an immediate review of the ASIC industry funding model.

Chartered Accountants Australia and New Zealand, CPA Australia, Financial Planning Association of Australia, Institute of Public Accountants and SMSF Association say the steep increase highlights serious issues with the funding model and will hasten the exodus of advisers from the industry.

The fee hike, published by ASIC yesterday, represents an increase of 160 percent over two years for financial advisers. Meanwhile, the number of financial advisers has fallen from around 25,200 in 2017-18 to about 21,200 now.

The total cost levied by ASIC is now $1,500 per retail advice licence, plus an additional $2,426 per authorised adviser under the licence. This means a sole practitioner holding a limited licence can expect to be hit with a $3,926 bill from ASIC within weeks.

The organisations' top five concerns are:

1. The model doesn’t account for changing industry dynamics.
2. The model is contributing to the decline in financial adviser numbers.
3. Remaining participants are left to shoulder a disproportionate cost burden.
4. ASIC’s preliminary cost estimates are often inaccurate and hence difficult to budget for.
5. Penalties and fines are diverted to consolidated revenue rather than off-setting ASIC’s costs.

The group noted that the industry funding model has not changed despite major shifts in the financial advice sector. For example, banks have largely ceased operating financial advice businesses. Yet ASIC’s budget to oversee financial advisers has increased from $25.6 million in 2017-18 to more than $56 million in 2019-20. This is largely due to supervision and remediation of historic deficiencies in the banks.

Declining adviser numbers mean that remaining participants must shoulder a heavier proportion of the total cost. This is impacting the viability of remaining businesses. Ultimately, this has flow on-effects for competition and the accessibility and affordability of financial advice.

a spokesperson said ASIC provides an estimate for each year’s industry levy about six months before the final amounts are invoiced.

"Experience has shown that these are often inaccurate," the spokesperson said. "This makes it difficult for financial advice businesses to budget for their operating costs.

"Fines and penalties go into consolidated revenue. Retaining these would help off-set ASIC’s operating costs and put a stop to the existing cycle of levy increases."

The group is calling for the following action in response to the fee increase:

1. The government should immediately review the industry funding model.
2. The government should reduce or remove the latest industry funding levy increase.
3. ASIC should be properly funded from consolidated revenue to undertake its functions.
4. ASIC’s industry funding levy must reflect the cost of regulation and not fund other budgetary measures.

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THE House Standing Committee on Industry, Innovation, Science and Resources will travel to South Australia to hold a public hearing for its inquiry into Developing Australia’s Space industry.

The committee will also conduct site visits of some of Australia’s awe-inspiring space technology and infrastructure, including the RAAF No 1 Remote Sensor Unit, Lot 14 and the Australian Space Agency.

The chair of the committee, Barnaby Joyce MP said, "Australia was at the forefront of the space industry in the 1960s. From the geophysicists to the welder to the scientists soldering together the wire on a new Australian satellite, our nation has a future in space.

"Like all the space endeavours the benefits are far greater on the ground after the launch than the initial thrill of successful deployment. This inquiry will inform and ventilate the benefits of our own space industry across our nation," Mr Joyce said.

The committee is keen to learn more about what capabilities, support, skills and training are required for Australia to be a leader in space. It will hear from a range of stakeholders who are already playing a role in developing this important industry.

Hearing details

Date: Wednesday 10 March 2021
Time: 9am–3.15pm
Venue: Adelaide Hilton (Victoria Room), 233 Victoria Square, Adelaide.

A copy of the public hearing program can be found on the Committee’s website.

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MUSWELLBROOK Shire Council should "reverse its bizarre opposition to an extension of Mangoola mine and back the hundreds of local jobs it will sustain"the Mining Union said today. 

CFMEU Northern Mining and NSW Energy vice president Jeff Drayton said coal miners had traditionally been able to rely on local government representatives to support their jobs because of mining’s contribution to the region.  

“Muswellbrook Council’s opposition to the mine was surprising and seems to be based on spurious grounds,” Mr Drayton said. 

“All mining proposals should of course meet the high environmental and regulatory standards required in NSW. Glencore’s proposal for Mangoola does this, while also creating jobs and delivering millions for the local and state economy.” 

The Mangoola Coal Continued Operations Project, which is currently being considered by the Independent Planning Commission of NSW (IPCN), would extend the mine’s operation until 2030. The mine would otherwise cease production in early 2025. 

The project would sustain 400 existing coal mining jobs, which would grow to 480 over the course of the project; create an additional 145 construction jobs; and provide a $92.6million net benefit to the Upper Hunter over the course of the project. 

Mangoola Mine has a highest proportion of local workers of any in the area, the union said, with 88 percent living in the Muswellbrook, Upper Hunter and Singleton Local Government Areas. 

The Mangoola extension should be considered on its merits and not on ideological grounds, Mr Drayton said. 

“I encourage all Muswellbrook Shire Councillors to reconsider council’s position and back local jobs,” he said. 

“And I urge Muswellbrook community members to make a submission to the IPCN showing their support for the jobs and economic activity the Mangoola extension will create.”

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