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Susan Edmunds
Susan Edmunds
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Tax rules on share funds unfair

Monday 4th of November 2013

Anthony Edmonds, of Wellington-based Implemented Investment Solutions (IIS), says the system unfairly disadvantages people who put their money in New Zealand-manufactured global share funds.

He said the fair dividend rate (FDR) regime, which taxes locally-structured global share portfolio investment entities (PIEs) differently to offshore-based products and direct investments, has left many New Zealand investors out-of-pocket and damaged the country’s funds management industry.

Edmonds said: “The FDR tax regime is unfair, as individuals using PIE global share funds, including KiwiSaver schemes, generally pay more tax than those who invest directly in global shares, which includes offshore global share funds.”

He said the Government had created a situation where investors had a tax incentive to invest directly offshore, and in offshore-manufactured funds.

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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.
21 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.
23 hours ago Backstage
FMA outlines its latest expectations for advisers
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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".
3 days ago Paul Flood