The rum ration bites the dust again: the end of quantitative easing
For several centuries, sailors in the Royal Navy enjoyed a daily ration of rum, designed to fortify sailors to do what sailors had to do under what were often horrendous circumstances. And we are not talking a nip here, at least not to begin with. Originally, before common sense began to prevail, the daily ration
November 10, 2014
What behavioural finance can tell us about life insurance advice and commissions
On October 9, the Australian Securities and Investments Commission (ASIC) released a damning review of the insurance advice provided by some financial advisers. The common theme was that the client was worse off, while the adviser pocketed a large benefit by way of an up-front commission. Financial advice tended to be much better in circumstances
November 10, 2014
Advisers can learn about competing managed account models at one location
IMAP, Institute of Managed Account Providers, has assembled some of the industry’s leading managed account providers to sponsor Managed Accounts Central at the upcoming FPA Congress in Adelaide. At Managed Accounts Central delegates will have free access to PCs and a technology centre for email checking and internet access. HUB24, netwealth and Philo Capital will
November 07, 2014
Roskow plans to launch a new, lighter-touch financial advice venture
Financial planning business Roskow Independent Advisory is planning a spinoff advice venture targeting lower-complexity clients. The idea of a sister business grew out of a recognition the existing firm was not providing maximum value to all clients, says Neil Salkow, director, Roskow Independent Advisory. The as-yet-unnamed venture will follow the same Roskow principles, but offer
November 07, 2014
US financial planner hopes Australia forges a different path to professionalism
From SixtyFive, the bar on level 65 of 30 Rockefeller Plaza, you can see quite a lot of New York City. From this vantage point near the top of one of the city’s iconic art deco buildings, at night and with the appropriate cocktail in hand (a Manhattan – what else?) the scale of the
November 07, 2014
Upfront commissions: the life industry’s scapegoat
Outlawing upfront commissions won’t see more consumers take out cover or change the behaviour of advisers who habitually provide inappropriate advice. The solution lies in better educated advisers and consumers plus an image makeover for the industry, writes Scott Moses. Advisers have been led to believe that they add the most value for clients upfront.
November 07, 2014
Emerging markets still offer value for investors who change their approach
Investors concerned about slowing economic growth and the prospect of muted equity returns in emerging markets should think twice before exiting the sector, global asset manager AllianceBernstein said today. “There are still good returns to be made in emerging markets and the key to capturing them lies in a change of investment approach,” said Sammy
November 06, 2014
New Adviser Ratings website attracts 850 Advisers and 13,000 visitors
The free online Adviser Ratings service has signed up 850 advisers across the country and attracted 13,000 visitors to its website, just three weeks after launching. The service is already helping advisers promote their service, be rated on their performance and credentials, as well as monitoring their clients’ satisfaction levels and behaviour. The Adviser Ratings
November 06, 2014
Waning central bank influence puts investors on notice
“Gone are the days when central banks could pull the levers and set global economies on the right course. Their actions still have an effect, but they have clearly failed to resolve many of the fundamental problems facing world economies post GFC.” This is the view of John Birkhold, Partner at global investment manager, Origin
November 06, 2014
Finding the financial planning graduates your practice needs
Demand for financial planning talent is traditionally skewed towards experienced candidates, but the rising bar of education standards means graduates are in high demand. “How do we get people coming in with a base level education, and an interest in the right reasons for being in the industry, without just expecting someone to come in
November 05, 2014
The biggest risk for retirees is when planners mistake risk for uncertainty
As the focus of retirees shifts ever-further towards objectives-based outcomes, those entrusted with achieving those objectives will have to rethink a traditional approach to managing money involving risk and return trade-offs. Speaking at the Fiduciary Investors Symposium (FIS) at Harvard University last week, Abdallah Nauphal, chief executive and chief investment officer of Insight Investment, a
November 05, 2014
