Interest Rate Advice to Depositors

      

 

 

Reference Id is PWF.0001.0001.1803

Introduction
 
   
The Journey
 
 

This matter, to which the audio refers and which I will set out in detail in a few minutes, is used to highlight the crux of my Submission to the Royal Commission:

Which is, the history of management by ASIC and APRA of Australian financial institutions is in my opinion a significant contributory factor to the circumstances that has unfolded with the banks over the last few years.

 
In 2015 Notifications
 
 
ASIC Inquiry Reference Number: 1-15641046059
 
 

From: Connect@asic.gov.au
Sent: Wednesday, 20 May 2015 5:33 PM
To: me@warrenbolton.com
Subject: ASIC Inquiry Reference Number: 1-15641046059

Dear Warren,
Thank you for your inquiry.
Our email response time is two business days.
Should you contact ASIC's Customer Contact Centre about this inquiry before you receive an email response, could you please advise the Customer Service Officer that a response to this email is no longer required. Please quote this ASIC Inquiry Reference Number (1-15641046059) so we can cancel your email inquiry.
Your inquiry;
ASIC Inquiry Reference Number: 1-15641046059
Family Name: BOLTON
Given Name: Warren
Telephone Number: (04) 2939 4904
Email: me@warrenbolton.com
Entity Name:
Entity Number:
Enquiry Type 1: Other
Enquiry Type 2: Other


Question: Is there any legislative obligation for an ADI to notify a depositor when the ADI changes the published rate of interest applicable at the time of the deposit.


Thank you
Australian Securities & Investments Commission

 
     
 

Subject: Re: Your question to ASIC: 1-15641046059

From: Connect@asic.gov.au [mailto:Connect@asic.gov.au]
Sent: Thursday, 21 May 2015 9:18 AM
To: me@warrenbolton.com

Please do not reply to this email as it is an unattended mailbox. Please ask us a question by contacting us at www.asic.gov.au/question


Dear Mr Bolton

Thank you for your enquiry  
I would suggest that you contact The Australian Prudential Regulation Authority (APRA) with your query.
www.apra.gov.au

Due to the unique nature of each enquiry ASIC is not able to provide interpretations or recommendations specific to some enquiries or circumstances. If you require further information please seek independent advice through an ASIC registered agent, your accountant or solicitor.
Regards,
Debra 
Customer Service Officer
Australian Securities & Investments Commission
Ph: 1300 300 630

 
 

 

So - what about this?

 

 
 

From: Info [mailto:Info@apra.gov.au]
Sent: Friday, 22 May 2015 2:38 PM
To: me@warrenbolton.com
Subject: Your Enquiry about Disclosure Requirements [DLM=For-Official-Use-Only]

For Official Use Only
Dear Mr Bolton

Thank you for your email of 20 May regarding the disclosure of interest rates.

The role of the Australian Prudential Regulation Authority (APRA) is to regulate authorised deposit-taking institutions (ADIs) such as banks, credit unions and building societies and insurance companies, some superannuation funds, and friendly societies in order to promote the prudent management of those financial institutions.

Disclosure requirements are the responsibility of the Australian Securities and Investments Commission (ASIC). ASIC is responsible for regulating financial markets, financial services and consumer credit activities. This includes disclosure of information by financial institutions in Australia and the regulation of financial intermediaries. You can contact ASIC online at www.asic.gov.au, or by phone on 1300 300 630.

If you are not satisfied with the service an ADI has provided, you may wish to make a formal complaint in writing to the entity itself.

I trust that this information is of assistance.

Regards

Sharon
APRAinfo Officer – Governance, Communication & Information
Australian Prudential Regulation Authority

T 02 9210 3128 | F 02 9210 3430
E info@apra.gov.au | W www.apra.gov.au
400 George St (Level 26), Sydney, NSW 2000

 
     
 

From: Warren Bolton [mailto:me@warrenbolton.com]
Sent: Monday, 25 May 2015 6:45 AM
To: 'Info' [APRA]
Subject: RE: Your Enquiry about Disclosure Requirements [DLM=For-Official-Use-Only]

Hi Sharon

Do you find this as interesting as I do? You see I sent the question to both organization.

Very confusing isn't it.

[Included ASIC email of  Thursday, 21 May 2015 9:18 AM]


Warren Bolton
04 293949 04
07 5483 4769

 
     
   
 

From: Connect@asic.gov.au [mailto:Connect@asic.gov.au]
Sent: Monday, 25 May 2015 8:14 AM
To: me@warrenbolton.com
Subject: ASIC Inquiry Reference Number: 1-15696469227

Dear Warren,
Thank you for your inquiry.
Our email response time is two business days.
Should you contact ASIC's Customer Contact Centre about this inquiry before you receive an email response, could you please advise the Customer Service Officer that a response to this email is no longer required. Please quote this ASIC Inquiry Reference Number (1-15696469227) so we can cancel your email inquiry.
Your inquiry;
ASIC Inquiry Reference Number: 1-15696469227
Family Name: BOLTON
Given Name: Warren
Telephone Number: (04) 2939 4904
Email: me@warrenbolton.com
Entity Name:
Entity Number:
Enquiry Type 1: Other
Enquiry Type 2: Other

 

Question: Your question to ASIC: 1-15641046059.

You sent me a response on 25 May but you told me that as it came from an unattended mailbox if I wanted to respond I had to do so through this form on your web site. However the information I want to provide, by text, to you, is greater than 2000 characters so in order to overcome this restriction, I have put my response here: http://www.ozsmart.com/irate.html

Thank you
Australian Securities & Investments Commission

 
 

So where to from here?

 
 

From: Connect@asic.gov.au [mailto:Connect@asic.gov.au]
Sent: Monday, 25 May 2015 11:07 AM
To: me@warrenbolton.com
Subject: Re: Your question to ASIC: 1-15696469227

Please do not reply to this email as it is an unattended mailbox. Please ask us a question by contacting us at www.asic.gov.au/question

Dear Mr Bolton,

Thank you for your enquiry

As outlined in the email from APRA, if you would like to lodge a formal complaint, you will need to contact the entity itself.

You can find the information you need on our website at: http://www.ASIC.gov.au/complain


Due to the unique nature of each enquiry ASIC is not able to provide interpretations or recommendations specific to some enquiries or circumstances. If you require further information please seek independent advice through an ASIC registered agent, your accountant or solicitor.
Regards,
Catherine 
Customer Service Officer
Australian Securities & Investments Commission
Ph: 1300 300 630

 
     
 

From: Connect@asic.gov.au [mailto:Connect@asic.gov.au]
Sent: Monday, 25 May 2015 11:49 AM
To: me@warrenbolton.com
Subject: Re: Your question to ASIC: 1-15703613020

Please do not reply to this email as it is an unattended mailbox. Please ask us a question by contacting us at www.asic.gov.au/question

Dear WARREN


Thank you for your enquiry

http://www.asic.gov.au/regulatory-resources/financial-services/financial-product-disclosure/

Due to the unique nature of each enquiry ASIC is not able to provide interpretations or recommendations specific to some enquiries or circumstances. If you require further information please seek independent advice through an ASIC registered agent, your accountant or solicitor.
Regards,
Melyssa 
Customer Service Officer
Australian Securities & Investments Commission
Ph: 1300 300 630
www.asic.gov.au/question
Enquiry Number  1-15703613020

 
 

NOTE:- Nothing contained within this page or the pages it link to, answers the question asked!

 
   
 

 

From: Connect@asic.gov.au [mailto:Connect@asic.gov.au]
Sent: Monday, 25 May 2015 12:53 PM
To: me@warrenbolton.com
Subject: ASIC Inquiry Reference Number: 1-15704266948

Dear Warren,
Thank you for your inquiry.
Our email response time is two business days.
Should you contact ASIC's Customer Contact Centre about this inquiry before you receive an email response, could you please advise the Customer Service Officer that a response to this email is no longer required. Please quote this ASIC Inquiry Reference Number (1-15704266948) so we can cancel your email inquiry.
Your inquiry;
ASIC Inquiry Reference Number: 1-15704266948
Family Name: BOLTON
Given Name: Warren
Telephone Number: (04) 2939 4904
Email: me@warrenbolton.com
Entity Name:
Entity Number:
Enquiry Type 1: Other
Enquiry Type 2: Other
Question: Subject: Re: Your question to ASIC: 1-15703613020

Melyssa

Nothing contained within the page referenced in your email or the pages it link to addressed or answers the question asked!

Question: Is there any legislative obligation for an ADI to notify a depositor when the ADI changes the published rate of interest applicable at the time of the deposit.


Thank you
Australian Securities & Investments Commission

 
     
 

From: Connect@asic.gov.au [mailto:Connect@asic.gov.au]
Sent: Monday, 25 May 2015 1:20 PM
To: me@warrenbolton.com
Subject: Re: Your question to ASIC: 1-15704266948

Please do not reply to this email as it is an unattended mailbox. Please ask us a question by contacting us at www.asic.gov.au/question

Dear Mr Bolton,

Thank you for your enquiry

To get information on the legislative requirements of ADI's you will need to contact the Australian Prudential Regulation Authority (APRA).

Alternatively, you can seek independent legal advice.


Due to the unique nature of each enquiry ASIC is not able to provide interpretations or recommendations specific to some enquiries or circumstances. If you require further information please seek independent advice through an ASIC registered agent, your accountant or solicitor.
Regards,
Catherine 
Customer Service Officer
Australian Securities & Investments Commission
Ph: 1300 300 630
www.asic.gov.au/question

 
     
 

From: Warren Bolton [mailto:me@warrenbolton.com]
Sent: Monday, 25 May 2015 5:49 PM
To: 'Info'
Subject: RE: Your Enquiry about Disclosure Requirements [DLM=For-Official-Use-Only]

Attention

Sharon
APRA - Info Officer – Governance, Communication & Information

Re:
Disclosure requirements are the responsibility of the Australian Securities and Investments Commission (ASIC).

ASIC is responsible for regulating financial markets, financial services and consumer credit activities. This includes disclosure of information by financial institutions in Australia and the regulation of financial intermediaries. You can contact ASIC online at www.asic.gov.au, or by phone on 1300 300 630.[22 May 2015 2:38 PM]

From ASIC

[Included ASIC email of  Monday, 25 May 2015 1:20 PM]

 

Warren Bolton
04 293949 04
07 5483 4769

 
     
 

From: Info [mailto:Info@apra.gov.au]
Sent: Wednesday, 27 May 2015 12:51 PM
To: me@warrenbolton.com
Subject: Your Enquiry about Disclosure Requirements [DLM=For-Official-Use-Only]

For Official Use Only
Dear Mr Bolton

Thank you for your emails of 25 May regarding the disclosure of interest rates.

The role of the Australian Prudential Regulation Authority (APRA) is to regulate authorised deposit-taking institutions (ADIs) such as banks, credit unions and building societies and insurance companies, some superannuation funds, and friendly societies in order to promote the prudent management of those financial institutions.

As outlined in the Australian Securities and Investments Commission (ASIC) Product Disclosure Statements (and other disclosure obligations) regulatory guide ‘clients may receive a number of different disclosure documents prior to the issue of a financial product.’

Some of the requirements outlined in ASIC’s regulatory guide include:

  • ‘disclosure should promote product understanding’
  • ‘disclosure should highlight important information’

The guide also states that a Product Disclosure Statement should includes information such as:

(a) fees payable in respect of a financial product;
(b) risks of a financial product;
(c) benefits of a financial product; and
(d) significant characteristics of a financial product.

Please see the regulatory guide attached for your reference.

ASIC’s Moneysmart website offers investment advice for consumers which includes: ‘Read the product disclosure statement (PDS) for each investment product and make sure you understand the product's key features, fees, commissions, benefits and risks.’ More information can be found on the following website: https://www.moneysmart.gov.au/investing/invest-smarter#choose.

I trust that this information is of assistance.

Regards

Sharon
APRAinfo Officer – Governance, Communication & Information
Australian Prudential Regulation Authority

 
     
 

From: Warren Bolton [mailto:me@warrenbolton.com]
Sent: Wednesday, 27 May 2015 4:12 PM
To: 'Info'
Subject: RE: Your Enquiry about Disclosure Requirements [DLM=For-Official-Use-Only]

Thanks Sharon that a comprehensive response but unfortunately your answer is of no assistance as it does not address the question I asked.

I am not seeking information in relation to 'financial products' or 'consumer guidelines or advice' I am simple asking for an answer to my question.

i.e.  Is there a statutory requirement (a law about!) for an ADI to advise a depositor when the ADI changes the published rate of interest at the time of deposit?

Just a "Yes" or "No" will be fine

In the event the answer is "Yes" I would appreciate advice as to  the responsible agency to administer that law and a citation of the name of Act and relevant section - would also be great.

Regards   

Warren Bolton
04 293949 04
07 5483 4769

 
   
 

From: Info [mailto:Info@apra.gov.au]
Sent: Wednesday, 27 May 2015 4:23 PM
To: Warren Bolton
Subject: RE: Your Enquiry about Disclosure Requirements [DLM=For-Official-Use-Only]

For Official Use Only
Dear Mr Bolton

For reasons outlined in APRA’s previous emails, any such law would be administered by ASIC, rather than APRA.

 

You may wish to pursue your inquiry with ASIC, notwithstanding the fact that ASIC have mistakenly referred you to APRA. (my bold and underlined)

I regret that APRA cannot be of assistance.
            
Regards

Mathew
APRAinfo Manager — Governance, Communication & Information
Australian Prudential Regulation Authority

 
     
 

From: Warren Bolton [mailto:me@warrenbolton.com]
Sent: Wednesday, 27 May 2015 5:19 PM
To: 'Info'
Subject: RE: Your Enquiry about Disclosure Requirements [DLM=For-Official-Use-Only]

Thanks Mathew for your perseverance and clarification.

 

Unfortunately now I will now have to lodge a formal complaint to ASIC

Kindest regards

 

Warren Bolton
04 293949 04
07 5483 4769

 
     
  As a consequence of this I then complaint to Commonwealth Ombudsman