Sunday, May 13, 2007

Institute of Financial Advisers

Last Thursday the Wellington branch of the IFA held its annual financial and legal forum.

The theme was "Raising the bar"

The following are my bullet point notes. Please feel free to contact me if you want any points expanded.

Rt. Hon. Lianne Dalziel – Regulation
- KiwiSaver is aimed at those who can, but don’t save.
- Currently the industry associations have no teeth.
- Having a regulated environment is about Disclosure/ Competence / Accountability.
- Member of professional organisations are already well positioned.
- Public has low financial literacy (according to ANZ survey)

David Carrigan – Tax
- $50,000 overseas threshold is based on purchase price of investment.
- Overseas investment excludes PIE investments
- When threshold is reached, tax paid on total overseas investment.
- Quick sale tax is paid when investments bought & sold in same year.
- Top tax rate to remain 33% for managed funds.
- PIE stands for Portfolio Investor Entity.
- Lazy KiwiSavers will have 75% of their investment in fixed interest.

Karen Stevens – Risk Management
- Industry funded for policyholders.
- Traffic fines must be declared to your insurer every year.
- Website is
- Recommends full doctor notes to insurer with application.
- Advisers should sell advice, not just product.
- Over communicate & keep great records.

Kevin Armstrong – Investment
- Important to have a future looking view.

Rt. Hon. Winston Peters – Savings
- Kiwis are enslaved by debt to foreign investors.
- Immigrants are driving the property market

- Tweaking interest rates won’t curb demand.
- Credit card holders are being ripped off by huge interest rate charges.
- Hansel & Gretel were the only ones who ate their house.
- Compulsory super is the answer.
- We must export or die.

Adrian Orr – Economics
- Current pension amounts & entitlement age is sustainable.

Sir Brian Lochore – Leadership
- Great leaders are born great.
- All Blacks who had careers outside the game were 20% more effective.
- Great leaders are great motivators.
Check out my Blog on this session

Graham Rich – The industry
4 mega trends:

1. The reformation of regulation (local & global regulation & harmonisation)

2. The movements of markets (China & India’s growth)

3. The turbo charge of technology (delivering personalised solutions)

4. Retirement of “retirement” (focus on financial independence)

Disclaimer: This is my interpretation of the highlights from the speaker’s presentations and is not a complete transcript of the event.

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