ASIC cuts highlight the need for better financial planning self-regulation
In making the transition towards professionalism, Australia’s financial planning sector needs to embrace more effective self-regulation, according to Richard Batten, partner and financial services legal specialist at Minter Ellison. He refers to the management of “bad apples” within the industry, especially in the context of this year’s budget, that has seen the Australian Securities and
June 13, 2014
FEATURE The true value of letting independents be independent
The option of being self-licensed need not be daunting if financial planners can find the right partner to work with. And if anecdotal evidence on the number of planners intending to acquire their own Australian financial services licence (AFSL) plays out for real, there will be a significant number looking for such a partner. Soula
June 13, 2014
New rules could lead to disability income insurance issues for SMSFs
Unless we have significant legislative reform to the superannuation rules on temporary incapacity benefits, it will become increasingly rare for disability income insurance (DII) to be arranged through clients’ super funds. In recent years there have been a series of tax and super law developments that have weighed against holding DII inside of super. And arguably
June 13, 2014
Blue Sky raises $60 million for Australia’s first alternatives LIC
Strong investor interest has seen Blue Sky Alternative Investments Limited raise more than $60 million in an Initial Public Offering (IPO) of its Alternatives Access Fund, exceeding the minimum subscription level of $50 million. The new Listed Investment Company (LIC), set to debut on the Australian Securities Exchange (ASX: BAF) on Monday 16 June, will
June 12, 2014
Investors confident in global markets, yet cautious to invest
Following a record high in April, in May Australians revealed themselves to be less likely to invest overseas, according to the Certitude Global Investing Index (CGIII). The CGIII, which collates the views of over 500 actively engaged leading investors and measures their net demand for global investments, fell for the first time since February this
June 11, 2014
Financial planner knowledge shortfall could hinder Australia’s $500 billion-plus SMSF sector
Financial planners often lack the essential knowledge of self-managed superannuation funds (SMSFs) required to adequately advise the growing sector, says the head of technical standards at the SMSF Professionals’ Association of Australia (SPAA). “We see that, from self managed funds, there’s not enough education about how SMSFs operate,” says Graeme Colley, SPAA’s director of technical
June 11, 2014
Helping clients to negotiate the many risks in retirement
Retirement is a major milestone in people’s lives. It is increasingly becoming a major focus for financial planners as the “grey tsunami” results in 1000 people a week turning age 65. Clients tend to be more concerned about generating a secure and growing income in retirement and are less interested in outperforming financial indices. The
June 11, 2014
What’s consistent with the banks is inconsistent with professionalism
In the heat of the debate around consumer protections in financial advice, Industry Super Australia (ISA) has sometimes been characterised as being pitted against financial planners. On the contrary, ISA and the funds we represent have always promoted the importance of quality financial advice. Our members need accessible, impartial and high-quality financial advice. For most
June 11, 2014
Earnings-focused global share investment process delivers for Zurich
Best-of-breed active management targets stocks with accelerating earnings growth; wins approval from major dealer group Zurich Financial Services Australia (Zurich) has secured a model portfolio inclusion from a major institutionally- owned dealer group, with a global share fund that challenges conventional thinking. Rather than following investment norms by focusing on the overall level and duration
June 10, 2014
Australian ETP sector reaches another record high of $11.4 billion
The Australian exchange traded product (ETP) industry set another record high as total assets for the industry grew approximately 3% this month to $11.4 billion, an increase of $354 million, according to BetaShares Australian ETF Review for May 2014. Importantly, almost 70% of the growth was attributable to new money flows, not asset price increases,
June 10, 2014
IN FOCUS: Getting a fix on bond funds
In late April, the giant US-based technology company Apple issued $US12 billion ($12.9 billion) of bonds. It was able to issue the securities at interest rates roughly comparable with the rates at which the US Treasury issues bonds. It was a clear signal by investors that they regard the creditworthiness of at least one major corporation very nearly as
June 10, 2014
Financial planners urged to check professional indemnity fine print
Financial planners have been advised to check they are covered by their licensee’s professional indemnity (PI) insurance, especially given the growing popularity of alternative investment strategies, managed investment schemes and gearing arrangements. “PI insurers generally are concerned about things like double-gearing, managed discretionary accounts (MDA) arrangements, limited powers of attorney and authority and direct shares
June 10, 2014
