News Round Up

Rich Dad's Guide to Investing, Order Investment Statements online, Adviser registration - Vote NOW, S&P predicts premium rises, FMG keeps private accident policy.

Sunday, April 9th 2000, 12:00AM

The latest book to be added to Good Returns' bookstore is Rich Dad's Guide to Investing by best selling writer Robert Kiyosaki.

Other books by Kiyosaki include Rich Dad Poor Dad and The CASHFLOW Quadrant.

As a special offer Good Returns is selling the Rich Dad's Guide to Investing for just $28.

You can order this book by clicking here. Also, Good Returns offers you the choice of either paying by credit card (through its secure server), or by cheque.

Financial Link online
Another new service available to advisers from today (Monday) is an online investment statement order form.

The service, financial-link.co.nz, allows advisers to order in bulk copies of investment statements from many of the fund managers offering product in the market.

Instead of having to ring each individual manager to order investment statements, advisers can go to the financial-link.co.nz website and order a number of different brochures at once.

As a special promotion advisers who register and order product from Financial Link before April 30 will go into a draw to win a case of wine.

To find out more about Financial-Link click here, or to go straight to their website click on this link financial-link.co.nz.

Adviser registration
Adviser regulation is hotting up as a key issue in 2000. What do you think? Should the status quo be maintained or should advisers be regulated by either the Government or their own industry.

Cast your Vote Now in our online poll.

If you've got a view on the issue Have Your Say in the Discussion Forum.

Investors unlikely to prosper
The Securities Commission has made an order prohibiting a Bahamas company, Cronus Trading Corporation, from advertising interests in investment schemes.

The commission considers the investment schemes being offered on behalf of Cronus Trading Corporation are in breach of New Zealand securities law. There is no registered prospectus and investment statement, and there is no trustee to represent the interests of investors.

Cronus's registered agent is Prosper International, a company that the commission has previously issued warnings about.

Commission senior executive Norman Miller says it is difficult to work out how Cronus invests money as the promotional material is vague.

He says the proposal offers very high interest rates (3 per cent per month for amounts up to US$1,000 and 35 per cent per month for US$1million).

"Investors' money may be at risk given interest claims of this order and the lack of financial information about the promoters," he says. "Offers of this type are often fraudulent."

FMG sticks with policy
Farmers Mutual Group intends to continue with its workers compensation policy, Recover Plus, despite the government's plans to unwind the private accident insurance market.

Recover will provide top-up cover over and above the existing ACC scheme. The top up benefits include a death by accident benefit, care support package, lifestyle benefit and risk management and no claims discount options.

FMG executive manager distribution Neil McKechnie says the nationalised ACC system of one-size fits all does not address the needs of the rural community.

"Under ACC, all farmers will pay the same rate, regardless of claims history, risk management and safety procedures," he says.

S&P predicts premium rate rises
Standards and Poors predict that non-life insurance companies will need to start rising premiums soon because of falling profitability.

"Excess capacity, intense competition, inadequate premium rates, and a high level of claims resulted in a very poor earnings performance in the New Zealand non-life insurance market in 1999," S&P managing director, insurance, Ian Thompson says.

While the New Zealand industry's expense ratio has remained relatively fixed at over 30 per cent, the loss ratio has gradually climbed to more than 70 per cent in many classes of business in 1999.

Thompson says premiums have fallen significantly over the past few years.

Multiple increases will be needed to fully restore adequate profitability, he says.

« Securities Commission wants power to ban advisers

Get your tax questions answered online »

Special Offers