Weekly Wrap: Joint APB collapses

A wrap up of this week's news: The biggest news of the week for advisers is undoubtedly the collapse of the joint Approved Professional Body concept.

Friday, May 11th 2007, 3:00PM

As we have reported in Good Returns this week three of the associations have agreed to work together, while one is now going it alone.

Yesterday we had reported that the Professional Advisers Association, Society of Independent Financial Advises and Life Brokers Association are going to form their own, no-frills APB, which is separate from their associations.

Today the Institute of Financial Advisers makes its case and tells why it is going alone.

Also today there is a lengthy Blog on the collapse which asks a few questions and makes some comments on the collapse. I encourage you to read it and provide your feedback.

What becomes of the broken-hearted?
Well, well, well. So the four associations representing financial advisers can’t work together to make a single regulatory body for their members.[more]

The other big story of the week is the emerging battle for shares in the only New Zealand owned life insurance company – Fidelity Life. FMG is making a bid to increase its stake in the business and as we report in Insurance News another bidder has entered the market with a higher offer. At the prices being offered Fidelity has a capitalisation of close to $110 million.

A trend which is in full swing at the moment is the launch of new products, which bring with them some old faces from the industry. We have the Thames Water offer which has George Kerr as a key player. Kerr started in the industry years ago with IPAC (FundSource’s predecessor), spent time at NZ Funds, then became the king pin in putting the Spicers group together and selling it to AXA. In this process he was chairman of Brook Asset Management.

Yesterday BT came out with a new farm fund. A key player with this fund is Cliff King, who established the NZ Rural Property Trust.

Other new investments on the horizon include another Liontamer fund.

While financial advisers are dealing with the fallout from the collapse of the G4 APB structure, mortgage brokers have a bigger problem on their hands. What to do if the banks cut their commission level paid to brokers.

Today we have results of our survey of brokers which throws up some fascinating results. Have a read here.

On the People front we have a new boss at Hanover, and two significant appointments at Vestar.

2007 Investment Year Book
The essential handbook for every Kiwi share market trader and investor.
Since 1973, the Investment Year Book has helped people make profitable decisions about the share market. It is specifically designed to give investors the information they need in a quick and convenient form.
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