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1. People Update

Manager Role LocationRER-Greater West SydneyBanking Advisor Branch Manager Branch Manager Customer Advisoi Branch Manager Branch Manager Branch Manager

Branch Manager Customer Advisorl Mobile Banker Mobile Banker Customer Advisoi Banking Advisor RERMobile Banker Region Manager Small Bus Banker

Outcomes

Interview lues 15/12 Recommend Amber Non Reversible lAmber Reversible SSI released

25% reduction in 5SI, further investigation lAmber Nan-Reversible reveals Introducer connections -TBA No fraud, no LSR Coaching to be heldlAmber Reversible SSI released Investigation continuing Under investigation Under Investigation Outcome

IOutcome

issed

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2. Loan Update

2.1 Home Loans via Introducer

al Customersroduced

Total # LoansDrawn Down

Total $ LoansDrawn Down

Total # LoansCurrentExposure

Total CurrentExposure

Total Currently Delinquent

16 26 $17.25M 25 $17.09M $0.76SM202 250 $107.7M 171 $75.66M $1.83M18 18 $6.64M 15 $5.33M $1.QQM10 13 $5.21M 9 $101.76M $3.68M

2.2 Personal Loans

Of the 44 customer loans reviewed;• There is no commentary or documented evidence that would suggest any of these loans

were written under an Introducer or had any involvement from that saidit should also be noted that all these submissions have limited information attached in Siebel and contain very little or no commentary at all.

• 34 of the 44 loans are currently active• 20 of the 34 loans are currently managed by collections (58.8%) - Total Outstanding balance

of circa $400, 000• 14 of the loans in collections are in currently arrears >90 days• 3 loans have been written off to date Total Write Off amount of $64,826• 12 Loans are currently performing within their limits• 6 Applications were not proceeded with (NPW)• 3 loans have been paid out and closed

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3.1 Introducer Relationships

tart DateSep-13

May-14

Oct-14

22/12/2011

Onboarding RER

Interviewed 29/8/13 not required as an affiliate

3.2 Management Assurance and Risk Culture

In Store retail assurance reviews for^^^^^branch (6/14, 1/15 and 9/15)

Role in monthly Risk Governance forumFocus and support from State Manager Risk & ComplianceFace to face discussion (Sept 14, Feb 15 and July 15)Highlighted concerns acrossCash errors, KYC, eRisk, FOS, Refunds and Reversals, high Operational losses Role in driving a risk culture v. compliance culture?

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4. Other

1. Do we pay SSI to RER hold off whilst investigation continues?

2. SERP to be raised

3. Notify the Authorities (Police)

4. KPMG appointed

5. Report due to GRRMC Jan 2016

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