In Brief

Citibank shapes up

CITIBANK Pty Ltd has agreed to improve disclosures in its advertising following an investigation by the Australian Securities and Investment Commission. The enforceable undertaking by Citibank related to the promotion of its Premium Deposit Account.

ASIC was concerned with Citibank’s use of a number of terms and phrases, which it considered was potentially misleading.

GST changes

CHANGES to regulations covering GST has extended the GST grouping rules for partnerships and trusts.

The Federal Government believes the changes will substantially reduce GST compliance costs for business structures that are eligible to form a GST group.

The changes to the GST grouping rules took effect from April 1.

Under the rules, forming a GST group allows related entities to operate as though they are a single entity for many GST purposes.

 

Fraud warning

THE Australian Securities and Investment Commission has warned banking customers who use Internet banking to be wary of people seeking information on PINs or other account number details.

ASIC director of consumer communication Michael Dunn said customers from well-known institutions, such as the Commonwealth Bank and AMP Banking, had been targeted recently by people using fake websites to mimic official sites.

 Australian banking sites have been the latest targets, any popular financial or shopping internet site could just as easily be the object of this kind of fraud, he said.

Cuffe’s challenge

CHALLENGER International Limited announced the signing of the Merger Implementation Agreement with CPH Management Limited, the responsible entity of CPH Investment Corp.

The merger, subject to shareholder approval, will create a significant financial services group with a market capitalisation of $1.1 billion. It will be renamed Challenger Financial Services Group.

The agreed exchange ratio is 4.5 CPHIC units for each Challenger ordinary share.

Bill Ireland steps down as managing director of Challenger after 16 years service, with a $1.25 million payout. Chris Cuffe has been appointed acting chief executive.