Assessing why investors are so sanguine about events in Ukraine
As Crimea holds its controversial vote on secession, the outlook for Ukraine is more uncertain than ever. Investors usually hate uncertainty yet they seem to have shrugged off the latest geo-political upheavals. The rout of March 3, which saw Russian shares lose 12 per cent alongside a headlong rush towards the usual havens of gold,
March 15, 2014
The professional loneliness of the genuinely independent financial planner
True independence is the road less travelled in financial planning. Ben Smythe explains why he decided to take that route anyway. When I hear people, in all walks of life, describing themselves as “independent”, I immediately assume that person’s opinion is going to be objective. I am not so naïve as to believe it will always be the
March 13, 2014
Is the industry strong enough to embrace real self-regulation?
Replacing FoFA with a genuine self-regulation scheme would be easier than ever under a Coalition government – but Robert MC Brown wonders if financial planners have the courage to back such a bold move. View poll results: Is self-regulation for financial planning a realistic goal? If going it alone isn’t an option right now, maybe
March 13, 2014
If going it alone isn’t an option right now, maybe a partner is the answer
If self-regulation is a bridge to far for the financial planning industry, at least for the time being, then a co-regulatory model might be an achievable step in that direction in the shorter term. The majority of respondents to a Professional Planner poll in January said that self-regulation for financial planning is not a realistic
March 13, 2014
Tracking an emerging trend
Bronwen Moncrieff examines why global emerging markets have underperformed relative to developed markets. Over the 12-month period to November 30, 2013, investors in global equities (including emerging markets) enjoyed strong absolute returns. The MSCI World ex Australia ($A) Index and the MSCI Emerging Markets Free ($A) Index rose by 45.04 per cent and 18.34 per
March 13, 2014
Call for united front for associations to better represent financial planners
The principal and founder of a boutique funds management firm has called on associations that represent financial planners to form a united front that is focused on consumer outcomes and quality of advice. Andrew Fairweather, principal and founder of Winston Capital Partners, says the range of associations representing different segments of the financial planning industry
March 12, 2014
Service really matters when it comes to fees for service
If a client asks you how much you’re going to charge them next year, what is your answer? Probably it’s something like: “It depends”. It may depend on what services the client needs over the course of the year – but it might also depend on whether you charge a fee for service or you
March 12, 2014
Sign one of these without due care and attention, you’re certifiable
As the popularity of placing real property inside an SMSF grows, so too does the lenders’ choice to adopt the use of financial advice certificates. For those who have been asked to sign a financial advice certificate, it can be a source of stress and anxiety given the short amount of time to prepare these
March 12, 2014
A date with Roger Federer: the key to winning business from the rich
Last month, I conducted client interviews with investors who have more than $US500 million in assets. I spoke to an Englishman – living in America and in the hotel business – about how he was choosing his service providers. At the time he had seven hotel projects on the go, mostly in China and America,
March 07, 2014
What are the accountants up to?
Regular readers may recall a series of columns in 2012 devoted to the accounting profession, including a discussion of the draft standard APES 230, Financial Planning Services, in light of the principles stated in the FPA Code of Ethics. Readers may not be aware of an interesting development in the accounting profession’s governance standards relating
March 07, 2014
Why financial planners really are the doctors of the finance world
Advocates of professionalism are fond of drawing parallels between doctors and financial planners. And opponents of professionalism, or those resisting doing the hard work and restructuring that professionalisation requires, are just as fond of pointing out where the analogy falls down. But Dr Adam Tucker, with a foot firmly in both camps, says comparisons between
March 06, 2014
The evolution of advice and a focus on objectives
In corners of the financial planning community, savvy advisers are increasingly replacing advice models based on risk profiling and traditional strategic asset allocation with objectives-based advice. As the name suggests, objectives-based advice, also called outcomes-based advice, requires an in-depth understanding of an individual client’s short-, medium- and long-term needs and objectives. These objectives determine how
March 06, 2014
