[Weekly wrap] TNP move creates controversy

TNP's decision to launch its own professional association was the big news in the advice industry this week, but not everyone is happy about it.

Friday, February 24th 2012, 8:01AM

by Niko Kloeten

Making the announcement this week, TNP said the decision was a result of requests by its advisers, and said the decision might encourage advisers to join TNP but "that's not the primary motivation".

The move comes as PAA and NZMBA members prepare to vote on their proposed merger, and it has prompted calls for NZMBA members to oppose the wind-up.

And although the IFA said it held a "neutral" view on TNP's move, it raised concerns about TNP's decision to create its own adviser designations, saying there has been a "proliferation of acronyms" within the industry.

However, TNP has played down the concerns by others in the industry, saying it is not about to "rape, pillage and plunder" and that the move wasn't designed to undercut the PAA on fees.

Meanwhile, Darren Pratley has brought forward his resignation as chairman and chief executive of the NZMBA.

In other news, the PAA has joined the chorus calling for some kind of government assistance to help KiwiSaver members get financial advice, noting that it might increase the number of KiwiSaver members and AFAs.

It was the one-year anniversary of the February 22 Christchurch earthquake this week, and surprisingly, insurers report no spike in stress-related claims from the quake.

Insurance advisers at a OnePath seminar this week were warned about the high rate of divorce, and the problems it can create regarding life insurance ownership. Hint: having your life policy in the hands of a vengeful spouse isn't a great situation.

A couple of banks reported their quarterly results this week. The BNZ announced its mortgage book grew in the December quarter and its profit nearly doubled from the same period last year.

State-owned Kiwibank also had a good quarter, nearly quadrupling its profit and also growing its mortgage book.

Inflation expectations have dropped according to a Reserve Bank survey, possibly reducing the pressure on the central bank to increase the OCR.

Where have all the break fees gone? A mortgage broker says the banks haven't been charging the controversial fees to his clients recently.

From banks to a company aspiring to be one- Forsyth Barr has placed Heartland's listed bonds on 'hold' while it sees how it manages without the government guarantee that expired at the end of last year.

Finally, receivers for Equitable Mortgages, one of the finance companies to collapse and trigger the government guarantee, say they expect to repay between 65% and 70% of the money owed.

Niko Kloeten can be contacted at niko@goodreturns.co.nz

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