Guidance for after-tax reporting
The Investment and Financial Services Association (IFSA) has set up a working group to develop a ‘guidance note’ to enable members that want to publish after-tax returns to calculate these returns on a consistent methodological basis.
IFSA provides both ‘standards’ and ‘guidance notes’ for member funds, designed to inform members about industry best practice around certain areas. The decision to develop the after-tax reporting guidance note emerged during the recent production by an IFSA working group of a ‘standard’ dealing with ‘performance reporting’ by member funds.
“It was raised a number of times by members of this working group whether we should also be looking at creating a ‘guidance note’ for after-tax reporting,” according to IFSA chief executive Richard Gilbert.
IFSA subsequently decided to create a working group to “pool member thoughts on putting together a guidance note that would provide a consistent methodology for fund members wanting to report after-tax returns”.
Gilbert emphasised the guidance would not be binding on members in the same way a ‘standard’ is, and also that it is “still early days” in the development of the guidance note.
“What we are intending is to develop a guidance note whereby if a member does want to report performance on an after-tax basis this is a methodology that would be appropriate.
“We want after-tax reporting to be consistent and meaningful for the end-investor, and naturally if you have lots of companies using different methodologies it reduces the comparability.”
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
