You are viewing:-
archives advice

This category contains 189 posts

24 Jan 2023 (AFR) – Why the (improved) 60/40 portfolio is back in vogue

(24 January 2023, AFR, p27, Arian Neiron Contributor) There has been a lot of discussion recently about the so-called “60/40 portfolio”. Mind you, thousands of traders and investors do not follow such strategies – myself included. However, this news article is interesting reading because of the various references to the opinions of portfolio construction, including: … Continue reading

1 Dec 2022 (AFR) – More funds fall foul of ASIC over dodgy marketing

(1 December 2022, AFR, p28, Emma Rapaport, Markets reporter) – I have said before that I don’t invest in managed funds, after having an adverse experience at the time of the 1987 stock market crash (but that is not advice, and is not a recommendation for you to do likewise). Following are some snippets from … Continue reading

23 March 2022 (AFR) – Push on to close investing loophole

(23 March 2022, AFR, p8) – “The collapse of six property projects pushed by property promoter Sasha Hopkins and the A Team has reignited calls from consumer advocates and financial planners to close the loophole that allows marketing of direct property investments without a financial services licence.” Read more at…

6 Jan 2020 (AFR) – Investing: Corporate regulator investigates Dixon Advisory

(6 January 2020, AFR, p13, Jonathan Shapiro and Carrie LaFrenz) ‘The Australian Securities and Investments Commission is investigating listed wealth manager Evans Dixon over the advice provided to some of its clients after the corporate watchdog received several complaints over 2019. ASIC is investigating the Dixon Advisory arm, which merged with boutique firm Evans & … Continue reading

6 Jan 2020 (AFR) – Investing: Wealthy clients are no longer sophisticated investors

[COMMENT: This is an interesting move forward regarding the way in which so-called “sophisticated investors” are treated by their financial adviser or stock broker. For years now, different rules have applied to them on the assumption that because they have a bucket load of money to invest, that they know how to invest, and are … Continue reading

25 July 2019 (AFR) – Retirees will scream ‘blue murder’ in a crash

[COMMENT: Now this is a very contentious topic – how to define the various terms used to categorise managed funds and more importantly superannuation funds – growth, balanced or conservative. There seems to be some very wide variations between the fund managers – which many people would call ‘misleading’.] (25 July 2019, AFR, p8, Joanna … Continue reading

5 July 2019 (AFR) – Broking bad: warnings of an advisory wipeout

[COMMENT: This is an interesting expose into the world of stoke broking, and some of the things that can go wrong. Bottom line? – Maybe don’t trust everything that everyone tells you.] (5 July 2019, AFR, p20, Liam Walsh, Reporter) ‘Questions are being raised about why one of Australia’s biggest stockbrokers did not disclose internal … Continue reading

29 March 2019 (AFR) – Consumers confused over financial advice: ASIC

[COMMENT: This is a very interesting article. When we stop and think about it, it’s no wonder that general consumers are confused about the terminology in this field. the regulators have put this wording in place without taking enough time and care to make sure that consumers understand it.] (29 March 2019, AFR, p20, James … Continue reading

9 Feb 2019 (AFR) – Banking Royal Commission: now you will get what you pay for in financial advice

(9 February 2019, AFR, p30, by Ben Smythe) ‘As highlighted in the royal commission, people paid a lot of money for what they thought was financial advice. But in fact what they were paying for were expensive financial products (in-house superannuation, managed fund funds etc) with little or no financial advice that was specific to … Continue reading

9 Feb 2019 (AFR) – Banking royal commission: what it means for you

(9 February 2019, AFR, p28, by Nicole Pedersen-McKinnon) ‘Get set for changes to how you pay your financial planner, get a mortgage and what you do with your super when you move jobs.’ ‘One of the few unresolved consumer questions about the royal commission report Kenneth Hayne delivered to the government this week is: “Who … Continue reading

21 Dec 2018 (AFR) – ASIC takes aim at conflicted brokers, bankers over equity market deals

(21 December 2018, AFR, p1, by: Jemima Whyte and Jonathan Shapiro) ‘The corporate regulator is questioning whether Australia’s liberal rules for capital raisings have created an environment that favours a select club of stockbrokers and investors, and flagged plans for tougher scrutiny of debt markets and large share sales. The Australian Securities and Investments Commission’s … Continue reading

14 Nov 2018 (TheAge,SMH,MONEY) – ‘Lazy’ advisers push Australians to invest overseas

[Comment: Here are some an interesting comments about investing local versus overseas, and whether to diversify your portfolio, or include managed funds, or even heed the “advice” of your financial planner.] (14 November 2018, The Age, SMH, MONEY supplement, p2, by Marcus Padley) ‘I remember going to New York in 2006 and John, my Wall … Continue reading

10 Nov 2018 (AFR) – Super investors warned about turbo-charging ‘safe’ funds to boost performance

[COMMENT: This is one topic that has puzzled myself for a long time – How on earth can we compare all of the ‘balanced’ super funds, for example, when they don’t use the same definition for ‘balanced’? We’re actually comparing apples with oranges, so to speak. So performance comparisons are out the window. And then, … Continue reading

15 Oct 2018 (AFR) – JPMorgan’s Kolanovic says systematic selling in markets 70pc over

[COMMENT: Now I thought that we had heard a lot of bad advice coming out of the Hayne royal commission. I cannot beleive that “profressionals” are now telling us to “buy the dip” in the markets. Can they guarantee the market (and stocks) will not be falling further? Will they refund our losses if we … Continue reading

15 Oct 2018 (AFR) – After ‘bad advice’, ASIC lets former advisers off the hook

(15 October 2018, AFR, p17, by Misa Han) ‘The corporate regulator says it will not go after rogue financial advisers who have left the industry, contrary to Commissioner Kenneth Hayne’s advice unscrupulous advisers should be publicly condemned. The corporate regulator’s financial advisers register shows all of the nine advisers named in the royal commission for … Continue reading

15 Oct 2018 (AFR) – Financial planning valuations squeezed as advisers abandon ship

(15 October 2018, AFR, p17, by James Frost) ‘Valuations of financial planning firms are under pressure with experts saying valuations could halve or worse, leaving some planners more than $1 million out of pocket as the adviser exodus picks up steam. Experienced advisers who are unhappy with new professional standards due in 2024 are voting with thier … Continue reading

1 Oct 2018 (AFR) – More advisers set to exit after Hayne findings of ‘dishonesty’, ‘greed’

(1 October 2018, AFR, p9, by Joanna Mather) ‘Kenneth Hayne’s findings of “dishonesty and greed” within financial planning will exacerbate a mass exodus already under way and send the value of advice businesses plummeting further, an expert says.  Friday’s interim report details “bad advice” that occurred under the auspices of Westpac, ANZ, AMP and NAB.  But its scope is even wider, … Continue reading

11 Aug 2018 (AFR) – IOOF super fund staff raided member reserves

[COMMENT: Talk about having trust in our large financial institutions. Some even lie to the regulator.] (11 August 2018, AFR, p1, by James Frost) ‘Staff at wealth manager IOOF raided a reserve fund to fix their own bungle then lied to both customers and the regulator about what had transpired, the Hayne royal commission heard … Continue reading

8 Aug 2018 (AFR) – Lessons from investor’s attempt to claim $11m in share losses against income

[COMMENT: This news story covers a perplexing topic that frequently puzzles (share market) investors and traders – How do we account for the proceeds from trading activities?  Is it regarded as income, or a capital gain? This is a very grey area with accountants offering differing opinions from time to time. This news article reports … Continue reading

8 Aug 2018 (TheAge,SMH) – How lazy financial planners get money for nothing

(8 August 2018, The Age, MONEY supplement, p2, Marcus Padley) ‘Superannuation funds are in front of the Hayne royal commission into banking and financial services this week and have been asked to reveal their entire fee and cost structures for the first time. The suggestion is that retail funds controlled by big institutions have been … Continue reading

3 Aug 2018 (AFR) – Wells Fargo agrees to pay $US2b to end GFC-era mortgage probe

(3 August 2018, AFR, p16, by Hannah Levitt and Kartikay Mehrotra) ‘New York/San Francisco | Ten years after faulty mortgages upended the global financial system, Wells Fargo & Co has agreed to pay $US2.09 billion to settle a US probe into its creation and sale of loans that contributed to the disaster. The long-anticipated penalty, … Continue reading

18 July 2018 (TheAge,SMH) – Dobbed in: ASIC reports rise in ‘bad apple’ financial advisers

(18 July 2018, The Age, Business, p22, Ruth WIlliams) ‘The corporate regulator says it is witnessing a spike in the number of “bad apple” financial advisers dobbed in by their former employers, a “positive development” in a sector notorious for allowing poor performers to move from firm to firm. The Australian Securities and Investments Commission’s … Continue reading

17 July 2018 (AFR) – CBA farm account bungle puts risk back in the spotlight

[COMMENT: The Hayne Royal Commission continues to reveal horror stories with us, some of which shatter any trust we might have had in the “banks”. This is a sample of what can go wrong when borrowing from a bank.] (17 July 2018, AFR, p11, by James Frost) ‘Systems that allowed thousands of Commonwealth Bank customers … Continue reading

24 May 2018 (AFR) – Mass financial adviser exodus puts $900 billion in play

(24 May 2018, AFR, p17, by Alice Uribe) ‘A mass exodus of financial planners over the next five years will put $900 billion of client wealth in play as the reality of tougher educational standards and the fallout from damning royal commission revelations set in. The stunning shift in the industry is a key finding … Continue reading

5 May 2018 (AFR) – Hayne royal Commission and the banking crisis: insiders reveal when the rot set in

(5 May 2018, AFR, p15, by Karen Maley) ‘It’s been a torrid few weeks for the country’s big four banks. Not only have they had to endure the daily humiliation of having their misdeeds paraded before a disbelieving and horrified public by the Hayne royal commission, there’s also been a scathing official report on the culture … Continue reading

28 Apr 2018 (AFR) – Why investment bank research analysts are leaving their jobs in droves

(28 April 2018, AFR, p23, by Joyce Moullakis) ‘A seismic shift is battering the research departments of investment banks. Each year, after the rush of February corporate reporting season and as they inspect bonus cheques paid by their European and Wall Street head offices, investment banking staff take a moment to ponder their future. Often … Continue reading

28 Apr 2018 (AFR) – The untouchables: How the dodgy financial planners kept their jobs

(28 April 2018, AFR, p16, by Joanna Mather) ‘Charging dead people fees, impersonating clients, falsifying signatures. It’s all apparently in a day’s work for unscrupulous members of the $4.6 billion financial planning industry. For the best part of the past week, the Hayne royal commission explored the misdeeds of advisers employed by the big banks and AMP. The testimony was … Continue reading

28 Apr 2018 (AFR) – Banking royal commission raises separation of product and advice

[COMMENT: Caveat emptor!! How can we find a reliable financial advisor?] (28 April 2018, AFR, p4, by Fiona Buffini) ‘The banking royal commission has questioned whether the vertical integration of banks, as product makers and advisers, can serve the interests of customers. Counsel assisting the royal commission Rowena Orr, QC, asked whether it was possible … Continue reading

28 Apr 2018 (AFR) – Highway robbery? – How to find a decent financial planner

(28 April 2018, AFR, p28, by Joanna Mather) ‘How do you spot a truly independent financial adviser? Well, it’s tricky. The $4.6 billion financial planning industry is characterised by a complex web of allegiances and opaque reward structures that, as the Hayne royal commission has demonstrated, do not always serve the best interests of consumers. While it … Continue reading

26 Apr 2018 (AFR) – Bad planners simply ‘go down the road to another association’ – FPA powerless to discipline planners

[COMMENT: With the current revelations from the banking royal commission, investors should be looking wisely for a good financial planner.] (26 April 2018, AFR, p1, by Joanna Mather, Alice Uribe) ‘Incompetent or crooked financial planners can walk away from the industry’s professional associations, without any penalty, to avoid sanctions and punishment for giving poor advice … Continue reading