Networth News

Welcome to the Networth News update for Wednesday the 21st of September.

ACCC runs ruler over CBA/Count deal

The Australian Competition and Consumer Commission (ACCC) is examining the potential impact Commonwealth Bank’s acquisition of Count Financial might have on the financial planning, insurance, home loan and investment platform markets. The Financial Review reports that these are the four key areas of overlap in the potential deal, according to the ACCC, which also noted that the life insurance and retail investment platforms markets are secondary areas of overlap. The ACCC is calling for submissions on the proposed deal by 26 September.

FoFA could impact practice valuations

The Government’s Future of Financial Advice (FoFA) legislation could have unintended consequences for the value of financial planning practices, according to the Financial Planning Association (FPA). Money Management reports that while the FoFA legislation is not retrospective, it is unclear about what might happen in the event of the sale of a practice or a book of business. Dante De Gori, FPA’s general manager, policy and government relations, said this may have a significant impact on practice valuations and argued that the legislation should be amended so that financial planners and clients can decide on timing and process for opt-in.

Industry fund members keen for investment advice

More than half of industry super fund members are interested in over-the-phone single-issue advice, according to research from Energy Super. Financial Standard reports that just over 40 per cent of industry fund members would also be interested in face-to-face super education seminars. There is a general lack of understanding about investments among industry fund members, and less than 20 per cent use the services of a financial adviser. The survey also found that about a third of members were unsure of what super account they held while 18 per cent did not know what their current super account balance was.

Managed funds impacted by market volatility

Australia’s managed funds have been impacted by recent volatility in both local and international markets, according to a Morningstar report. Investor Daily reports that the pool of money managed by Australia’s managed funds fell 2.4 per cent, or $22 billion, to $936 billion in the June quarter. This is the first quarter of negative growth since September 2010. Jemima Joseph, associate analyst at Morningstar, said volatility in domestic and international share markets during the June 2011 quarter led to a combined $17.20 billion flowing out of Australian and international equities. In addition, Joseph said cash and mortgages have both suffered four consecutive quarters of asset reductions.