The Retirement Commission has added an Equity Release section to its website.
“Home equity release schemes are one way out of the ‘asset rich, cash poor’ trap for many older people. But they can be complex and expensive, so it’s vital people do their homework first,” Retirement Commissioner Diana Crossan says.
The new section explains equity release in easy-to-understand language, as well as identifying things to look out for.
The commission says that to date take-up of equity release schemes has been low. However it’s thought equity release will become an increasingly attractive option as our population ages.
Crossan said it was important people ensured they were well-informed about the pros and cons of equity release. “Many of the products only suit some people.”
Task Force discussion forum launched
Financial planning magazine ASSET has launched a website where you can discuss the important issue of financial intermediary regulation.
Regulation is in all likelihood the biggest issue facing your business and it is something which isn't going to go away. The Task Force has said as much. It says there is consensus for change. But what should the changes be and who should they impact on? Will regulation really help the industry or will it drive you out of business?
The Task Force presented four options in its paper ranging from the hands-off self-regulatory approach to full-blown licensing. It hasn't told anyone which option it prefers.
Which Option do you think it should take? Why do you think it should take any of these Options? Do you and your fellow advisers really need regulating?
The forum at www.assetmagazine.co.nz has been set-up so you can have your say.
Dorchester's insurance and advisory business under-perform
Dorchester Pacific reported an 8% increase in profit for the 2005 financial year, but says that its advisory and insurance businesses were “both significantly below the trading result for 2004.”
The finance sector had a 44% profit increase in pre-tax profit. The investment advisory and sharebroking sector was 30% below the previous year and the insurance sector was 40% below the previous year.
Deemed rate of return increases
The deemed rate of return used for taxing foreign investment fund interests has increased from 9.45% to 10.17% for the 2004-05 income year.
The deemed rate of return, which is set annually, applies to all types of investments, including interests in superannuation schemes and life insurance policies. It is based on an average of five-year government stock rates to which a margin of 4% is added.
BNZ offer over-subscribed
Bank of New Zealand last week launched the ninth tranche of its Registered Transferable Deposit bond programme in response to strong demand from institutional and retail investors for well-rated corporate bonds. The issue was oversubscribed by just over 30%. Strong demand was apparent from a cross section of professional investors for the issue. Bank of New Zealand has an AA- Standard and Poor’s rating.
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