Networth News

Welcome to the Networth News update for Thursday the 15th of September.

True costs of FoFA hidden: AFA

The Association of Financial Advisers (AFA) has accused the Government of bias in its examination of the cost impacts for financial advisers implementing Future of Financial Advice (FoFA) reforms. The first tranche of drafted FoFA legislation, released August 29, cites Rice Warner Research commissioned by the Industry Super Network (ISN). The AFA questions the validity of the research, which assumes significantly lower implementation costs for advisers than cited in many other leading industry research papers. CEO of the AFA, Richard Klipin says this conduct is “not acting in the public interest, but in the interest of industry super funds” in a newly released blog by the online financial advisory community website – No More Practice.

ASIC to recede as Westpoint compo clears

A federal court judge has cleared liquidators of Westpoint, PricewaterhouseCoopers and Ferrier Hodgson to distribute settlement funds of $67.45 million according to corporate regulator, ASIC. As compensation actions wind-up, “the usual liquidation process” will unfold while ASIC scales-back its involvement in the proceedings. Investor Daily reports that ASIC intends to remove its Westpoint liaison officer from managing investor queries as well as dismantling components of the Westpoint investor website.

Europe, Japan and US have procrastinated too long

World Bank president Robert Zoellick has warned that the global economy may “drift into dangerous currents” if short-term political tactics are not replaced with responsible decision making in Europe, Japan and the US according to SMH.com.au. In a speech delivered at George Washington University, Zoellick has accused the American, European and Japanese Government’s of procrastinating and waiting “too long on taking difficult decisions”. Zoellick has also cautioned the damage of this inaction may affect the global economy.