20210806 Money in a bank: whose is it?

The essence of banking is that a bank is in a fiduciary position in relation to its customers and that deposits are, in effect if not in law, held on behalf of account holders in a form of trust.

In short, money in the bank belongs to the account holder.

What if it doesn’t?

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20200421 Nigel’s Newsletter: in the face of lockdowns….

Nigel Morris-Cotterill

We’ve added around 1,000 subscribers since the last newsletter so, to you, thank you and to those who’ve been on the list for, in some cases, getting on for 20 years, thanks for your patience over the past few months while other things have taken priority.

20180807 ASIC plans to place a supervisor inside banks. Good or not?

Nigel Morris-Cotterill

Australia’s ASIC (Australian Securities and Investments Commission) has been, rightly, stung by the brutal criticism it has suffered during the The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Using the bizarre expression “regulatory capture” which sounds like another one of those phrases designed to attract media attention to the words not their meaning, ASIC’s Chairman, Mr James Shipton, told The Australian Broadcasting Corporation “We want to have our supervisory officers physically inside these financial institutions by the end of the month.” Is this a good, or even a new, idea?

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