Question mark over planner advice
The value of any advice received from financial planners is to feature prominently in a NSW Government review of investments made by 152 local councils.
Local government minister Paul Lynch said yesterday that the review was “prompted by anecdotal evidence” in the wake of the US sub-prime mortgage crisis of councils making bad investments that could have long-term ramifications.
“The thing that the audit needs to get to the bottom of is whether councils have invested in things they’re not supposed to have invested in,” he said.
“Also, whether that’s a result of their decision or whether they’ve taken advice from financial advisers that has turned out to be wrong.”
Lynch added that the audit was required to try to ascertain exactly what the situation in councils was and get a sense of the size of the problem.
“It’s a bit hard to be able to put a precise figure on how much is involved,” he said.
The chairman of Platinum Asset Management board, Michael Cole, will lead the review, the results of which are expected to be available by mid-November.
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