Digital Finance Analytics (DFA) Blog
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According to the Sydney Morning Herald, “The National Australia Bank has quietly paid millions of dollars in compensation to hundreds of clients given what it considers inappropriate financial planning advice since 2009. The bank is the latest institution to face disturbing revelations of misconduct in its financial planning division, with a Fairfax Media investigation uncovering … Continue reading “NAB Financial Advisors Under The Microscope”
David Murray’s Speech to the Committee for Economic Development of Australia ‘Supporting Australia’s Economic Growth‘ coincided with the release of the Final Report of the Financial System Inquiry. First let me thank CEDA for being our host, once again, as we release the Final Report of the Financial System Inquiry. I’d also like to recognise … Continue reading “FSI – David Murray’s Speech”
The FSI report discusses the alignment of consumer outcomes and financial advice firms, questions “general financial advice” and adviser qualification. The report recommends that the term “general advice” be changed to better reflect what is intended and that the financial adviser or mortgage broker should be required to clearly explain their association with the product … Continue reading “FSI – On Financial Advice”
The Treasury has released their proposals for an enhanced Financial Adviser Register for consultation. On 17 July 2014, the Government announced that it would establish an enhanced register of financial advisers, and on 24 October 2014, the Government announced details of the register’s content. Whilst the register is sound (we do not know how many … Continue reading “Enhanced Financal Adviser Register Necessary, But Not Sufficient”
The results are now in for the last year from the major banks, and combined they delivered more than $28bn in cash profit, higher than the $27bn last year. There are several key drivers of profitability, the first is housing lending. Rises in property prices inflates new loans, and the banks’ balance sheets. If the … Continue reading “Big Four Serve Up $28.6bn Profit”
ASIC today released their review of activity in the Life Insurance Industry, and finds that consumers interests are not always given priority. The $44bn industry touches superannuation, annuities, and other elements, as shown in a diagram reproduced from the report. We have previously highlighted the issues around annuities. They found that high upfront commissions are … Continue reading “ASIC Says Life Insurance Industry Needs Higher Standards”
We updated our household surveys with the September data. Today we focus in on SMSF property transactions, which is a small, but rising factor in the market. We start by looking at the reason why trustees for SMSF’s are considering retail property. The strongest incentives are the tax efficient nature of the investment, and appreciating … Continue reading “SMSF Property Investment Continues – DFA Survey”
The CPI data which came out from the RBA yesterday registered 3%. This was very bad news for households with savings in deposit accounts at the banks, because ever more are finding that returns after tax are well below CPI. This is part of a worrying trend for many, and is prompting them to seek … Continue reading “Savers Quest For Yield”
ASIC today released a report into fee disclosure practices for super and managed investments. The intention of the fee and cost disclosure requirements is to promote comparability of products. However, ASIC’s review of industry practices indicates that there is significant variation in the disclosure of fees and costs. A key driver of this variation is … Continue reading “ASIC Warns On Super And Managed Investment Fees”