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ING waiting to see how LM Investment refinancing works out

Friday 16th of July 2010

The fund manager ring-fenced about 12% of the fund that was managed by LM last year after the Australian firm could not redeem the $10.1 million investment due to a first-ranking charge with Commonwealth Bank of Australia. Deutsche Bank in Sydney has stepped into the breach, putting up some A$90 million for LM to refinance its First Mortgage Income Fund.

An ING spokesman said it was good news that LM had refinanced itself, but it was too early to determine what will happen with the ring-fenced portion of its PPS Mortgage Fund.

Once LM starts making redemption payments, ING will use the net proceeds to subscribe to units in the live part of the PPS Mortgage Fund, and the ring-fenced portion will cease to exist once all of the units have been cancelled, according to the latest prospectus update.

As at June 30 2009, the Mortgage Fund had total unit holders funds of $64 million, down from $93.8 million a year earlier.

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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.
1 day ago Steve Wright
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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.
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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.
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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".
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