News Round Up: May 14

Liontamer winds things down; Independence under spotlight; Why we have under-insurance; Reserve Bank learns lessons from GFC

Monday, May 14th 2012, 7:01AM 5 Comments

Specialist fund manager Liontamer has reaffirmed its focus has changed from the launch of new funds, to the administration of existing funds under management.

With its changing business focus it has ended its marketing arrangement with Matt Mimms and The Investment Store and revamped its website.

“With no new funds in the pipeline, Matt is concentrating on the businesses of the other fund managers that he works with.”

Liontamer says its new website should assist advisers and brokers with all their queries. Currently it has have 21 live funds.

‘Independence' under the spotlight across the Tasman

Advisers across the Tasman who use the term ‘independent' are to face greater scrutiny by the Australian Securities & Investments Commission (ASIC).

ASIC said a recent surveillance project uncovered 21 instances of advisers' making false or misleading statements about the independence of the services they offered.

"ASIC's first priority is to ensure people are receiving the information they need to make informed decisions and confident financial decisions," said ASIC commissioner Peter Kell.

"We will not tolerate them being misled on the important issue of the independence of financial system gatekeepers such as financial advisers and insurance brokers."

The ASIC surveillance found the majority of the breaches were committed by general insurance brokers (17) followed by financial planners (3) and one life broker.

GFC lessons prompt new policies from RBNZ

The Reserve Bank (RBNZ) has announced three prudential policy changes based on lessons from the global financial crisis (GFC).

In response to the vulnerability the GFC exposed for financial institutions to suffer from liquidity contraction in the wake of a financial shock the Reserve Bank will require registered banks to increase their Core Funding Ratio from 70% to 75% in January 2013.

The Bank is also working with Treasury on policies to limit the build up of risk during credit booms and a new framework called Open Bank Resolution, which will give the Government options to quickly deal with a bank failure.

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Comments from our readers

On 14 May 2012 at 4:44 pm investor said:

Liontamer - unsure what value they have added for investors(sure they have added value to the promoter)

Happy to BE corrected but a cursory glance at over 10 of the funds on their website shows only 2 have unit price peRformance above an estimated risk free rate.

On 14 May 2012 at 4:46 pm Disappointed but not suprised said:

Liontamer it didn't roar very much. Most of their funds seemed to have underperformed.

Good there no longer seems to be a place for such fee clippers in a regulated environment

On 14 May 2012 at 4:48 pm baz said:

Wonder if the advisers who flogged the Liontamer product have PI cover ? How much of this has under-performed.

On 14 May 2012 at 8:14 pm again not suprised said:

mmm

Doubtless Liontamer will blame the market and say they have just been true to label.

37 funds listed on their website. Liontamer may want to refute this and get an independent reviewer to measure how they have helped investors relative to say bank deposits.

On 15 May 2012 at 9:16 am happyclients said:

Used well, these have been excellent products. Since most of them have been index linked, they have performed in line with the relevant index, albeit with capital production. When the Japanese market dropped 50% clients got their capital back. My clients in the commodity fund and Asian funds have been particularly well rewarded. To the neigh sayers above, I suggest that you know the product before you slag it and the advisers who used it. I suggest you also read the code re product knowledge and treatment of fellow advisers.