Budget Speech 2019/2020 | What you need to know
On 20 February 2019, Finance Minister Tito Mboweni announced the South African 2019/2020 budget changes. Click the link for a concise review of the key implications of the Budget Speech. BUDGET SPEECH 2019/2020
Read more...Revenue Realignment
Topics in 401(k) Distribution: Fourth in a Series TPA firms which administer 401(k) plans live mainly on 401(k) billed service fees, that’s not startling information. What is perplexing is that after growing steadily for years, the share of TPA firm revenue associated with these fees has declined slightly since 2016. In the nine years to […]
Read more...Advice fees but no service: a question of criminal law
The threat to vertical integration has receded but financial advice is under attack. Ongoing fees underwrite the economics of advice, but if services are not delivered, a crime may have been committed. The final report of Australia’s Financial Services Royal Commission was released on Monday; on Tuesday the share prices of banks and wealth […]
Read more...Tale of 3 members
In the tale of three member’s article, we look at the reasons why you should stay invested when moving between jobs. Tale of 3 members
Read more...Royal Commission quietly decimates advice industry
With quiet fury, Commissioner Hayne handed down his report. His commentary was scathing. The participants in Australia’s financial system (including its regulators) have been taken to task for greed and ineptitude. The recommendations are extensive, 76 in all; but on reading the 10 relating to financial advice and another 9 focussing on superannuation, you could […]
Read more...What happened in 2018
2018 was earmarked to be one of healthy, synchronised global growth, however it did not turn out as planned. The year ended up a tough one for investors, and most investments struggled locally and abroad. Click on the link below to read about the top contributors to the negative impact on the investment markets. Read […]
Read more...Adviser remuneration reforms and vertical integration bans: a sign of things to come?
By investigating practices implicit in vertically integrated business models, the Australian Royal Commission report is likely to ask serious questions of the wealth management industry: UK wealth managers need to take note. In early February a seminal report into misconduct in the wealth management industry is expected to be released which is likely to […]
Read more...Why 20 Percent Matters
Topics in 401(k) Distribution: Third in a Series Close to half of all 401(k) advisors are all but ambivalent when it comes to business development; half say their prospecting activity today compared to a year ago is about the same, nearly half (46 percent) say as much for their proposal activity. In fact, with respect […]
Read more...Steady Habits in the Land of TPAs
Topics in 401(k) Distribution: Second in a Series One enduring habit of TPAs who administer 401(k) plans is just how steady their habits really are. In this our sixth study of TPAs going back to 2004 we find, for example, that: • The median number of plans administered, 260, is virtually unchanged since 2012 (although […]
Read more...When is vertical integration OK?
Our industry has grown up relying on vertical integration- a model coming under increasing pressure. The banks are divesting from their wealth businesses, and there are strong views being expressed that the model is no longer fit for purpose, that it should be unwound. Notwithstanding the public flaying of the Royal Commission, such a binary […]
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