What will end this nightmare of shonks and greed, of clowns and cowboys?
Sometimes the financial planning industry lives right down to its reputation. It’s just a bad joke, a recurring nightmare of shonky advisers, stupid and greedy licensees and a rapacious, self-first culture. Relatively few financial planners and licensees suffer these shortcomings, but that is cold comfort while clowns and cowboys continue to generate all the headlines.
August 01, 2014
AFA code precursor timely as PJC turns its attention to standards and regulation
The Association of Financial Advisers’ release this week of a paper entitled Code of Conduct – 6 Principles of Professionalism sets the scene for the association to produce a full-blown code of professional conduct in coming months. Its release is timely. Codes of conduct will form part of a current Parliamentary Joint Committee (PJC) on
August 01, 2014
The Risk Tolerance Paradox, and what you can do about it
With a growing trend both globally and in Australia around low volatility, managed volatility, and portfolio risk management strategies, it is imperative that advisors and research consultants explore each strategy to uncover how different risks are being addressed. Identifying those techniques that are robust and able to address both diversifiable and systematic risks is likely
July 30, 2014
What to watch out for this reporting season: Jamie Nicol, CIO, Dalton Nicol Reid
Going into the August reporting season, the market has softened earnings expectations for companies. Declining commodity prices, a higher dollar than many had expected and a budget related decrease in consumer spending and sentiment were all drivers of the weaker forecasts. One bright spot in the economy however was the recovery in house prices and
July 30, 2014
FoFA regs debate not dead, just resting, as opposition tables further disallowance motion
The Federal Opposition is seeking to force Finance Minister, Senator Mathias Cormann, back into Future of Financial Advice (FoFA) negotiations, according to Senator Sam Dastyari and Bernie Ripoll, Shadow Minister for Financial Services and Superannuation. A further motion for the disallowance of FoFA regulations was tabled in the Senate on July 16, 2014 – the
July 30, 2014
PIS rethink on compliance was key to emerging from EU with a clean bill of health
When Professional Investment Services (PIS) entered into an enforceable undertaking (EU) in 2010, the business was widely regarded as a basket case. The Australian Securities and Investments Commission (ASIC) had a long list of concerns with PIS, its systems and processes, painting a picture of a financial planning licensee seemingly struggling to do even the basic
July 30, 2014
SMSF wills versus testamentary trust wills – what’s the verdict?
Estate planning for clients with a significant balance in a self-managed superannuation fund (SMSF) has always posed special issues for the professional planner. One view is that, to promote certainty for dealing with the client’s super on death, plus provide asset protection and potential tax savings on investment income, the client should make a binding
July 30, 2014
Lonsec reinforces diversification in lower return environment
Investment research house Lonsec Research (Lonsec) has announced key changes to its portfolios following the latest Strategic Asset Allocation (SAA) Review and Model Portfolio Review. Lonsec leverages its research capability to provide advisers portfolio management guidance through a range of Core Model Portfolios. SAA recommendations are reviewed biennially and Lonsec’s model portfolios are reviewed semi-annually
July 29, 2014
The need for timely life insurance claims
The growing number of people who lodge ‘late notified’ claims against disability policies many years after their cover has ceased force upwards pressure on the price of premiums. Australia’s largest life insurer TAL, through its initial the Financial System Inquiry submission (page 5), is calling for a time limit to be placed on when claims
July 29, 2014
Lonsec upgrades PM CAPITAL’s Absolute Performance Fund to ‘Recommend’
PM CAPITAL’s Absolute Performance Fund has returned to RECOMMENDED rating status following a review from leading research house Lonsec. Lonsec said its ratings upgrade reflects its increased confidence in PM Capital’s approach: “Lonsec has been impressed the underlying consistency of the PM philosophy and the conviction of the investment views.” “The fund’s contrarian style often
July 29, 2014
Brotherly love won’t influence the course of Australian Unity-Premium Wealth takeover
It’s usual in takeover negations for the chief executives of both firms to be closely involved. In the case of Australian Unity’s approach to Premium Wealth Management, however, the situation is a bit different. They’re brothers. Paul Harding-Davis, CEO of Premium (on the right in the picture), and his younger brother, Australian Unity Personal Financial
July 28, 2014
Affinia, Business Health peek behind the risk advice curtain
Risk focused financial planning practices face a number of specific challenges and opportunities, says Paul Gaffney, regional manager for Queensland and the Northern Territory at Affinia. In seeking to better understand these, Gaffney reveals it has recently partnered with consultancy practice Business Health to undertake what he believes is one of the first studies of
July 28, 2014
