[Weekly Wrap] A new impost

One of the big stories affecting advisers this week was a proposal that could make the already cumbersome Anti-Money Laundering regulations even more inconvenient.

Friday, February 15th 2013, 4:14PM

by Niko Kloeten

It's hard to blame advisers for feeling aggrieved at the proposal, which comes just as they are trying to get to grips with the current settings of the regime due to kick in at the start of July.

Requiring advisers and other participants in the financial industry to report all international wire transfers to police, regardless of whether they are suspicious, is not just cracking a nut with a sledgehammer; it's shooting down a paper plane with a surface-to-air missile. The more I talk to advisers about the ever-increasing level of regulation of their businesses, the more beaten-down and resigned to the inevitable they sound.

On a related note, Russell Hutchinson has questioned whether the increased level of compliance is affecting the insurance advisers market.

Also this week, the merry-go-round of research partners at AMP Financial Services has seen Mercer appointed, replacing van Eyk. This shows a healthy independence given AMP in Australia went a different direction, picking Morningstar as its preferred partner after its own review. Despite the setback, van Eyk says it is committed to New Zealand. However, a number of market participants I have spoken to since the announcement have predicted van Eyk will leave the country.

Predictions that video would kill the radio star proved to be unfounded and it's unlikely that the internet will kill adviser conferences. Online CPD and other facilities for advisers are useful but there are certain aspects to conferences that can't be replicated such as drinking with your mates (colloquially known as networking). Advice is often described as being more of an art than a science and therefore a lot can be learned from other advisers in attendance at events as well as the people standing up front.

In investment commentaries, Australasian equities are not overvalued and Asia is an income opportunity.

In insurance news, ASB sees potential in the life insurance market, while advisers have been warned to be wary of the fine print, regardless of what insurers say. And Southern Cross has tipped a rebound in the health insurance market.

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

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