Networth News

Welcome to the Networth News update for Monday the 26th of September.

Concerns aired over CBA's acquisition of Count

Non-aligned dealer groups expressed concerns over Commonwealth Bank of Australia’s proposed acquisition of Count Financial. Investor Daily reports that some groups are concerned about the possible impact on the independence of the financial planning sector and have called on the Australian Competition and Consumer Commission (ACCC) to block the deal. Dennis Bashford, managing director of Futuro Financial Services, said a shift towards vertical integration in the market discourages independent advice and is bad news for end clients. Snowball managing director Tony Fenning also said that it was a shame independents were being taken over, however, he did not expect the ACCC to block the deal.

Super funds urge calm amidst market volatility

Superannuation funds have urged their members to remain calm and wait patiently for the markets to turn around in order to minimise losses. Financial Standard reports that as Australian stock markets recently fell to their lowest levels in two years, super fund members should get advice from their fund or an adviser that can act in their best interests. Paul Schroder, general manager, growth and opportunities, AustralianSuper, said that fund members historically switched from one investment option to another at the wrong time, which could prove very costly in the long-term.

Deloitte to go on hiring spree

Deloitte is looking to hire 68,000 new staff globally after reporting record annual revenues and significant growth since the global financial crisis. The Australian reports that Deloitte plans to increase its workforce of auditors and consultants by more than a third over the coming four years. Deloitte already employs 182,000 staff around the world, and in the last year alone, the firm has hired 49,000 staff. Deloitte reported aggregate revenues of $US28.8 billion ($29.3 billion) for the 12 months to the end of May.

Rival dealer groups approach financial planners

Rival dealer groups are commonly approaching financial planning practices in a bid to get them to switch licensees. Money Management reports that over the past 12 months, up to 70 per cent of planners were approached by a rival dealer group, even though just over two-thirds of planners were not looking to switch licensees. Just over half had been approached twice or more and almost a quarter had three or more approaches, according to the Midwinter survey of more than 450 advisers from over 70 licensees. The survey found that being easy to do business with, planner autonomy and ability to cope with change were important to planners in working with dealer groups.