We don't often run Australian-based news stories on Good Returns, but this week was different. The Ripoll report on commissions and financial advisers is so important to New Zealand that it has had top billing this week.
Friday, November 27th 2009, 4:00PM
The report is a Parliamentary enquiry headed by MP Bernie Ripoll, that looked at many issues, particularly commissions.
It is important to New Zealand advisers, as our Securities Commission is likely to copy what happens in Australia. There was a view that the enquiry would recommend banning commissions be paid for selling financial services; however the report didn't go that far. Instead it chucked the issue back into the ring for further consultation. I would recommend readers keep abreast of this report.
Also related to commissions is news that Fidelity Life is changing the way it will pay advisers for selling its insurance products. The company has been doing a roadshow around the country talking about some significant changes to the way it does business.
Instead of getting into the battle to see who can pay the highest upfront commission it has gone for a model which has lower upfronts, but higher renewal commissions.
As an aside, I did love Milton Jennings' take on the proposed AMP/AXA merger. These are the two old mutual companies which have been slugging it out against each other for years, for them to get together is like "Liz Taylor getting back with together with Richard Burton".
One of our other stories from the presentation is that it has introduced a new system for doing medicals which should make the process far easier and quicker.
Today's story is about a quasi in-house fight over the DNZ IPO. Many media reports have looked at the IPO from DNZ (formerly Dominion Funds). The reports focus on the huge amount being paid for the management contract.
While the property manager was part of the Money Managers grouping, the financial planning firm, now called MMG, is fighting DNZ over the IPO. Read about it here.
Also this week the team from Magellan have been in New Zealand to talk about what they are up to. One of their views is that China is not the panacea to improve world economic growth.
How could I get this far into the Wrap without bringing up the Allied/Hanover deal? This is the story which has had some intrigue this week as a report surfaced another bidder was going to emerge for Hanover's assets.
Depositrates.co.nz has looked at this in detail and reviews who it could possibly be - if anyone.
In the meantime be prepared for a barrage of news early next week when the Grant Samuel independent report on the deal is released.
Sticking with finance company news, South Canterbury lost its chief executive, somewhat unexpectedly, yesterday and during the week St Laurence got a bouquet for the management of its moratorium.
We don't have many new appointments to tell you about this week, but we do have a new Special Report from Tower on its concept of Parallel Portfolios.
