The regulator cracks the whip on an errant property spruiker, AFA launches Inspire for women and property trumps shares in a cautious quarter for Australian investors.
Watchdog cracks down on SMSF property spruikers
ASIC has cancelled the credit licence of Money Choice Pty Ltd and banned its director, Matthew George, after an investigation found failures to comply with credit laws, responsible lending shortfalls and instances of unlicensed self-managed superannuation fund (SMSF) advice. George, who is the sole director of the Melbourne-based property investment and finance business, has been banned from engaging in credit activities for eight years and from providing financial services for three years.
“Mr George demonstrated through his conduct that he is not a fit and proper person to engage in credit activities,” said ASIC deputy chairman Peter Kell. “This included some instances where Mr George preferred his own interests to those of Money Choice’s clients.”
The regulator also found that George had advised some clients to set up SMSFs for the purpose of purchasing property when he was not licensed to provide such advice.
“We do not want to see SMSFs become the vehicle of choice for property spruikers and the action we’ve taken against Mr George should serve as a timely warning of ASIC’s intention to ensure compliance with the law,” said Kell. “ASIC is committed to improving the standards of advice given to investors regarding the establishment of SMSFs and the investments within the SMSF, including investment properties.”
Money Choice and George have the right to lodge an application for review of ASIC’s decision with the Administrative Appeals Tribunal.
AFA launches Inspire experience
The Association of Financial Advisers (AFA) is hosting three events in June to formally launch its Inspire initiative to help and encourage women be proactive in seeking support within the financial services industry. AFA Inspire chair, Deborah Kent, said the response has proved that women in the industry are actively seeking support networks outside the workplace. “In the first two weeks, the AFA Inspire LinkedIn group had over 200 members – so it’s clear the initiative is resonating within our industry,” she said.
Kent said the challenges women face in the industry extend beyond the workplace and the AFA Inspire program will help them network with other women, even clients, who may be facing the same obstacles.
“Women have different needs to men,” she said. “Creating a community where the needs of women are met is most important and the AFA has done this through the creation of the AFA Inspire initiative.”
The AFA Inspire launch will be held in Brisbane, Melbourne and Sydney from 17–19 June.
Property trumps shares for cautious investors
Colonial First State Global Asset Management (CFSGAM) says investors were cautiously optimistic about shares during the March 2013 quarter, but are braver when it comes to investing in the property market. These are the latest findings from the CFSGAM-UWA Business School Equity Preference Index (EPI), which measures investor sentiment of non-advised investors, tracking overall moves in and out of equity-based managed funds and switches between asset classes.
Senior analyst at CFSGAM, Belinda Allen, said the latest analysis revealed investor activity closely mirrored the flow of information about the market, suggesting sentiment toward equities is still very fragile.
“What really stood out in the March quarter was the increased appetite for shares,” she said. “Additional money was allocated into the asset class, which was largely driven by Australian male investors. Continued positive returns from the share market and lower interest rates prompted investors to increase their preference toward shares in January and February.”
When it comes to the residential property market, Australian investors appear far more confident in the same economic environment with both property prices and auction clearance rates accelerating in the March quarter.
“While investors are heavily reliant on a positive equity market outlook to increase their preference to shares, it seems that they are comfortable investing in residential property in the same economic conditions,” said Allen. “This is possibly due to a higher level of confidence in the property outlook or they are attracted to the tangible nature of property.”
