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Marac confident of improved profit

Wednesday 11th of June 2008

It says that asset growth slowed in the second half of the financial year, but asset quality remains strong and instalment arrears remain at normal levels of around 0.5% of receivables.

Marac's directors remain confident the net profit after tax for the year to June 2008 will be an improvement on the $24.7 million achieved in the previous financial year.

The company announced this week that it intends to raise up to $125 million through an offer of first ranking, five year, fixed rate secured bonds.

Earlier this year it increased its bank syndication by $80 million to $480 million and its retail funded, secured debenture programme remains at around $560 million with reinvestment rates within the 65-75% range.

It says an increased level of new fund inflows have been noted with new fund inflows for May 2008 at the highest levels since June 2007.

Added to this it has built up its liquidity levels and now holds more than $140 million in cash and undrawn funding lines.

Money raised in the bond offer will be used to finance Marac's ongoing lending activity, diversify its funding sources and add to its current liquidity position.

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FMA outlines its latest expectations for advisers
Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
12 hours ago Steve Wright
FMA outlines its latest expectations for advisers
Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
14 hours ago Backstage
FMA outlines its latest expectations for advisers
All things said are great aspirational goals for a great financial advice industry, it mirrors what both the legislation and the code requires. However, like most things discussed it talks about what's expected not how it's done. The hardest aspect of financial advice today isn't what it is, it is how it is done. The how only comes from those that have done it, the how is only provided with examples. Guidance documents that spell out what's required along side how it it done. We’re still dealing with the same issues we started with in 2021, figuring out the how. And figuring out the how in every advice business is consuming resources that could easily be shortcut by the FMA demonstrating what they are expecting. It's not about “do it this way” its about this is the sorts of things we’re looking for. In the absence of standards and expectations, guesswork prevails. That represents significant risk to FAPs and the result is onerous overcooked advice processes for multiple advice operations and undercooked she’ll be right for single operators focused on getting the work done. Both approaches have potential for harm and as its been said earlier, leaves advisers open to explain they haven't been speeding with the authorities have pulled them over. The advice industry needs guidance on the how we know the what already.
2 days ago Jon-Paul Hale
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2 days ago Jon-Paul Hale
FMA outlines its latest expectations for advisers
To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
3 days ago Paul Flood