Why FOFA Matters So Much

Last week, the Future of Financial Advice regulations were tabled in Parliament, following the recently published Senate review.  As currently incarnated they have the potential to drive a coach and horses through the original intentions of the FOFA reforms. Today we explore why this is so, and highlight some of the consequences for both the managed … Continue reading “Why FOFA Matters So Much”

In Europe, Move Towards Greater Investment Fee Disclosure Revealed

The latest EEC Directive “The Markets in Financial Instruments Directive II” (MiFID II) was passed into law recently and includes proposals for greater disclosure to investors in terms of the range of fees which are charged in the investment industry. It will give consumers a better feel for the true “all in” costs of investing. … Continue reading “In Europe, Move Towards Greater Investment Fee Disclosure Revealed”

Australian Annuities, The State of Play – Is There A Demand?

Today we start to look at annuities in Australia. This follows on from our look at the UK’s Annuity Mess recently. In Australia the annuity market appears undeveloped, but in the light of regulatory change, rising superannuation balances and self-managed superannuation, we review the likely prospects. Initially we will look at the demand side and … Continue reading “Australian Annuities, The State of Play – Is There A Demand?”

So Thats Where The First Time Buyers Are!

The ABS Finance data today tells the continuing rise in investment housing, and we we already know of a fall in first time buyer owner occupied purchases. But, that is not the full story. Actually, we see a significant rise in first time buyers jumping direct into investment housing, whilst still living at home, or … Continue reading “So Thats Where The First Time Buyers Are!”

Household Wealth and Property

The ABS Australian Social Trends Database is a mine of information on aspects of housing, wealth and population. Following some recent updates, we have been looking at wealth and property trends. Today we discuss some of the findings, which is a “tale of two cities”. First, here is the data on the number of owner … Continue reading “Household Wealth and Property”

The Truth About Bank Fees

Today the Federal Court ruled on the class action against ANZ relating to the bank’s penalty fees. The core of the case was that fees charged for exception transactions were higher than the costs of providing the service. ANZ was found to have charged excessive fees on late payments made to credit card holders. The … Continue reading “The Truth About Bank Fees”

Hybrid Securities Health Warning

The Australian Securities and Investments Commission (ASIC) today released information to help potential investors understand the complexities and risks of hybrid securities. Given the recent number of issues, and their popularity amongst self-managed super investors, this is timely. Background information also provides insights into the funding arrangements of the banks. Around $18bn was raised through … Continue reading “Hybrid Securities Health Warning”

Dissecting Shadow Banking – Part 3

Today we look at Shadow Banking in Australia, having set the scene by looking at the size of the global market and the core financial flows in previous posts. We are talking about players who are interpose themselves in credit flows outside the regulated banking system. Not all such players carry the same risks, and … Continue reading “Dissecting Shadow Banking – Part 3”

Property Market Investors Rule!

There is an interesting story to be told about how investors are tapping into the property market. First from our household survey we know that investors are widely spread across household groups. Down Traders for example, are quite likely to add an investment property into the mix when they release capital.  However, there are about … Continue reading “Property Market Investors Rule!”

Media

Martin North, Digital Finance Analytic’s founding Principal and banking sector analyst, willingly engages with the media offering informed, objective and independent views on banking, financial services and broader economic policy issues. He has a special interest in the dynamics of the housing sector. Requests by Media for interviews can be made here  or call 0412 … Continue reading “Media”