[Weekly Wrap] Busy week for FMA
The end of June has prompted a flurry of activity from the Financial Markets Authority.
Friday, July 5th 2013, 2:26PM
by Susan Edmunds
It provided feedback on QFEs' annual reports, an auditor regulation and oversight plan, a review of market disclosures and a report on its investigations and enforcement activity.
The first report we looked at was on QFEs. Many independent AFAs were probably relieved to see the ruler run over these entities - I have noticed a feeling from many that the FMA has been tougher on the independents than those under a QFE.
Then on Tuesday, I looked at the investigations report, which showed that there had been just under 3000 inquiries made to the FMA in the year, and just over 1200 complaints. The report said that unethical behaviour among advisers was going unnoticed. But so far, just four advisers have been referred to the FADC.
AML legislation also kicked in this week. So far, it seems, things have been running relatively smoothly. It is ironic that the only AML-related scare I've been told about is one the police themselves caused.
Good Returns was at the Perfecting Investment Portfolios conference in Auckland on Wednesday, where the hot topic was how investors can earn income in a low interest rate environment. There was a lot of talk about equities but some advisers I spoke to were still unconvinced that taking a punt on equities was worthwhile for their risk-averse clients. Jonathan Wu spoke well about the opportunities that are available in China, if we can get over our fears about investing there.
On the KiwiSaver front, no one would confirm reports that Grosvenor has bought Fidelity LIfe's KiwiSaver books. In mortgages, Shamubeel Eaqub spoke at the PIP conference about the debt-fuelled housing bubble that he thinks is a big mistake.
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