Super bill faces rocky road
Any feeling the Government's New Zealand Superannuation Bill was going to have an easy passage through the select committee process because it got cross party support at its introduction in Parliament are wrong.
ACT leader Richard Prebble showed in his self-billed "state of the nation" speech that any support ACT has shown for the bill is superficial.
"The Cullen scheme is at least doing something," Prebble says, "but the devil is in the detail with superannuation. With Cullen's scheme, the whole of hell is in the detail."
He says ACT intends to take finance minister Michael Cullen up on his willingness to accept constructive amendments.
ACT is clearly going to push hard for individual accounts. Likewise the Greens have talked about investing the fund ethically, yet they haven't articulated what they mean.
There are a number of different styles of ethical investing which range from the pure where you can't invest in stocks of companies which make things like alcohol, tobacco or munitions to "best of bred" a version which is normal investing with a green flavoured. Under this method a fund can invest in any sector (even the sin sectors) as long as the individual company is 'ethically' managed.
The other main concern is that the bill has been oversold to the public. That is, many people see it as being the panacea to the super conundrum and they don't need to save.
NZ Super is often talked about as being generous at 65 per cent of the net average weekly wage. But, as Investment Savings and Insurance Association chief executive Vance Arkinstall points out, that's 65 per cent for a married couple, not each individual. In reality the scheme will only provide a basic safety net.
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
