Sent: 20-12-2011 10:50:03
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Some Thoughts for Year's End
Another year's work is almost done. Now is a good time to reflect on what has occurred.
The Future of Financial Advice, the Mining and Carbon Taxes will tend to dominate most analysis of regulatory changes over 2011.
For markets it's all about the Euro, US Government debt and whether China has a hard landing. Will we have a credit squeeze in Australia?
On less weighter matters next year we'll have the legislative changes bringing to life the Cooper Review.
You might not have heard but already the Government has released draft changes to the super laws. Thus far these changes have concentrated on large APRA regulated funds and the trustee covenants in particular. A close reading of these draft changes shows that if implemented life for some retail super funds will become very challenging indeed.
In relation to the FoFA changes it would be foolish to assume that the changes will stop Storm Financial or Westpoint problems. The changes will certainly make financial advice more expensive but it won't stop bad financial advice being provided. But the Government will be able to say that it's trying to bring the industry into line.
If FoFA doesn't stop the next scandal (which I think is highly likely) then it will be really interesting to see what the next batch of financial advice regulatory changes will look like. Perhaps by then the politicians will come to the conclusion that the only way to solve these continual problems will be to enact some extremely draconian laws regardless of the pain that they cause.
On another note it will be fascinating to see how the carbon tax is implemented and which 500 organisations have to pay it. When will be find out who these organisations are and will they be able to argue that they shouldn't be part of this exclusive group of companies. For example suppose Wesfarmers is included but Woolworths isn't (thereby putting Westfarmers at an obvious commercial disadvantage).
I presume someone is thinking about this.
The latest batch of Tax Office SMSF data shows that SMSFs continue their strong growth path. If the market research released by Russell Investments earlier this year eventuates then the SMSF market will continue to get bigger and bigger. The outflows from all large super funds is beginning to get very serious. I expect SMSFs will be a major part of the planning process for all large super funds executives. SMSFs are more than a mere flesh wound to the big players!
This is out last email newsletter for 2011. Thanks for your support. Peace and joy to you and your families for Christmas and the New Year. We'll return on 31 January.
On a final note, I have just issued Version 6 of my SMSF book.
Please consider purchasing a copy of it. You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne
For details of the changes made from version 5 to version 6 visit: http://www.atcbiz.com.au/r.php?r=d5xcpch
As you'll see from the list there have been many changes.
Two purchase options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST). The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb
This email is general in nature only and does not constitute or convey specific or professional advice. Legislation changes may occur quickly. Formal advice should be sought before acting in any of the areas discussed. Be aware that the information in these articles may become innaccurate with time. Responsibility is disclaimed for any inaccuracies, errors or omissions. Particular investments are neither invited nor recommended and hence this publication is not "financial product advice" as defined in Section 766B of the above legislation. All expressions of opinion by contributors are published on the basis that they are not to be regarded as expressing the official opinion of any other person or entity unless expressly stated. No responsibility for the accuracy of the opinions or information contained in the contributor's articles is accepted by any other person or entity. Copyright: This publication is copyright. If you wish to reproduce this article you require a license, which can be purchased here, to do so.