Super and negative gearing: the issues are on the table
Former Treasurer Joe Hockey’s frank admission that tax concessions on superannuation and negative gearing need to be reviewed should be the catalyst for an informed policy discussion on the issues, according to the former Shadow Minister for Superannuation and Financial Services, Bernie Ripoll. In a valedictory speech to Parliament on October 21, Hockey said that
October 27, 2015
IN FOCUS: All types of portfolio diversification are not equal
Maintaining sufficient levels of diversification within investment portfolios is particularly important during periods of market volatility, such as those currently being experienced in Australia. It is also critical to maintain the “efficiency” of a diversification strategy – an objective made more challenging by rich valuations across mainstream asset classes, says Ben McCaw, a portfolio manager
October 27, 2015
Content of life insurance reforms isn’t likely to change further
A later implementation deadline seems set to be the only change to the Life Insurance Framework (LIF) after the Federal Government’s response to the Financial System Inquiry (FSI) last week. This is despite some niggling uncertainties stemming from the Assistant Treasurer’s comments. Kelly O’Dwyer, who is also the Minister for Small Business, on Wednesday told
October 25, 2015
The danger that lurks in linking risk tolerance scores directly to portfolios
FinaMetrica recently received feedback from a subscriber that they had switched to a competitor because their risk tolerance tool “also allows me to build a portfolio consistent with [an individual’s] risk by having risk scores assigned for our investments and portfolio managers.” We understand that all services have strengths and weaknesses and some people think
October 25, 2015
A traditional mode of transport gives time to think about the effects of the newest technology
For reasons that don’t bear going into, Professional Planner spent the better part of seven hours one day last week riding on a Greyhound coach from Sydney to Canberra and back. The glamour of the media. One of the upsides of this mode of transport is time to think and read. A lot of material
October 25, 2015
Teams vying for honours in University Challenge showcase the future of financial planning
On Monday at AMP’s Circular Quay headquarters in Sydney, five teams of university students will compete in the final of the 2015 AMP University Challenge in an event that showcases the quality of future entrants to the financial planing profession. This year a total of 367 students registered for the challenge, and a total of
October 22, 2015
The real effect profit warnings have on client investment portfolios
Two profits warnings, two different triggers but one painful outcome – Burberry and Walmart saw their shares fall by more than 10 per cent in a single day recently. Actually, both companies have something else in common – far from presenting investors with a shocking new piece of information, both were merely confirming what they
October 22, 2015
Why the ATO’s new powers make SMSF compliance more important than ever
It was big news when the Australian Taxation Office (ATO) was granted the right to unilaterally impose monetary penalties for certain contraventions of superannuation laws. The ATO gained this power with effect from July 1, 2014. Before July 1, 2014, in order to have a monetary penalty imposed, the ATO had to apply to the
October 22, 2015
Government sends clear message to financial planners: lift your game or you’re out
The federal government has endorsed proposals to raise the professional, ethical and education standards of financial planners, and will require planners to be degree-qualified, pass an exam, undertake continuing professional development, subscribe to a code of ethics, and undertake a professional year. The government will also effectively enshrine the terms “financial planner” and “financial adviser”
October 20, 2015
Financial planner suggests insurers are bullying clients and their advisers
In an unusual tactic, financial planner William Johns took his client’s life insurer to the Human Rights Commission (HRC) for an alleged breach of the Disability Discrimination Act — and won. A client who had taken a recreational drug around ten years earlier, but who had not used since then, was given an additional loading
October 20, 2015
Taking a partnership approach to life: AIA to base new initiatives on face-to-face feedback from advice partners
Over the past month through a series of forums across the major capital cities, AIA Australia has been engaging directly with advisers to hear what they are looking for from their life insurance partner in response to the Life Insurance Framework (LIF). The purpose of the forums was to meet with our advice partners across
October 20, 2015
Graduate recruitment and compulsory CFP behind StatePlus drive to expand advice offer
A graduate recruitment program and mandatory Certified Financial Planner (CFP) status for all of its planners from 2019 are key elements in an ambitions plan by StatePlus to significantly expand its financial planning presence. The former State Super Financial Services, rebranded as StatePlus as of Thursday last week, currently has about 160 financial planners and
October 18, 2015
