News Round Up

TET looking more likely, NZ Funds Logs On, Number of CFPs balloons, Global giant here in NZ, FPIA meeting updates

Sunday, February 27th 2000, 12:00AM

When the Government decided to raise the level of New Zealand Superannuation to its former levels, it missed the opportunity to introduce some form of Superannuation Surtax. Keith Rankin argues in SuperTalk that a return to the super surtax could just as easily be called a loan repayment. To read his provocative commentary click here.

TET looking more likely
Finance Minister Michael Cullen has given a fresh hint he will change the tax regime applying to superannuation schemes in his first budget due mid-year.

Cullen said last week that besides allowing top income earners a tax break on superannuation savings, "I intend to look at other options for encouraging savings".

His spokeswoman said this was a reference to Dr Cullen's previously canvassed plan to shift the tax regime for superannuation schemes from taxed taxed, exempt (TTE) to taxed, exempt, taxed (TET).

NZ Funds logs on

New Zealand Funds Management has taken a substantial stake in listed technology investor Strathmore through a share placement.

Strathmore has raised $6 million through placing 13.3m shares at 45c each with NZ Funds.

"With this investment, Strathmore introduces a substantial institutional investor holding well in excess of 5 per cent of total shares on issue," Strathmore says.

Strathmore says it has introduced two Australian institutions and with retail support it had another $1.8m from 4.1m shares.

Global giant here in NZ
The latest move in the global rationalisation of insurance companies will see NZ Insurance and State Insurance getting together.

Their parent companies, Norwich Union and CGU, last week agreed to a $62 billion all-share 'merger of equals' deal which would create the largest British insurance group and one of the top five life insurers in Europe.

In New Zealand a formidable group would be built in the fire and general insurance market. This alliance would probably require the approval of the Commerce Commission.

Combined, the two would have just under 40 per cent of the $1.8 billion general insurance market in New Zealand. NZI had domestic and commercial customers, while State was the biggest domestic general insurer.

Number of CFPs ballooning
The number of people licensed to use the CFP designation in the United States has broken the 35,000 barrier and set a new record, according to the Certified Financial Planner Board of Standards.
Board president Robert Goss says that last year the board certified nearly 2,400 new CFP licensees.

While the number varies from year to year, 1999 was the highest number in the past five years, he says.
A couple of weeks ago, 35,312 planners had been licensed under the CFP designation. The board expects about 5,000 more to sit the exam in 2000. Given the rate of successful applicants is 56 per cent, nearly 2,500 could win the CFP mark this year.
Goss says one of the reasons behind this lift in numbers is public demand.
Of the current CFP licensees, nearly a quarter are women and nearly 90 per cent hold a bachelor's degree or higher while more than 80 per cent identify themselves as being in the practice of financial planning.

FPIA Convention Update
For all the latest information on this year's FPIA Convention in Wellington CLICK HERE

This week
Wednesday - FPIA Waikato members meeting, Hamilton Club Midday.

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