News Round Up
Super savings paper out, Deemed rate of return falls, Customer service pays.
Sunday, June 8th 2003, 9:56PM
The first draft of an issues paper on savings has been released in the lead up to a Savings Forum to be held in late July.
The paper has been prepared by economist Peter Harris to provide background material for the Investment Savings and Insurance Association-organised forum.
"The paper identifies the key features of New Zealand's savings environment and discusses the issues around savings from a variety of perspectives - including employers, unions, government and those on low incomes. It also raises the core elements that need to be covered in a comprehensive savings policy framework," says ISI chairman Simon Swanson.
To read the full paper go to SuperTalk. click here.
Deemed rate of return falls
The deemed rate of return for foreign investment fund interests has dropped from 10.46% to 9.9% for the 2002-03 income year, Revenue Minister Michael Cullen has announced.
The foreign investment fund rules tax New Zealand residents on undistributed profits arising in foreign entities in which they have invested but do not control.
The deemed rate of return, which is set annually, applies to all types of investments, including interests in superannuation schemes and life insurance policies. It is based on an average of five-year government stock rates to which a margin of 4% is added.
Customer service winning formula
The PSIS has increased its net profit after tax from $5 million to $6.9 million in 12 months ending March 31.
Recently-appointed chief executive, Girol Karacaoglu says PSIS’s main point of difference is its focus on face-to-face interaction with customers.
“Large institutions can only dream of the customer relationships that PSIS enjoys.”
PSIS only does personal banking and has recently been promoting its mortgage and deposit rate businesses.
At least two-thirds of all its new customers in the past 12 months have come to PSIS through referrals from existing customers, Karacaoglu says.
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