News

News

UBS inks major deal with Japanese banking giant

Posted by Anton Murray Consulting on . Posted in News

InvestorDaily

The Swiss bank has revealed plans to launch a comprehensive strategic wealth management partnership in Japan. UBS and Sumitomo Mitsui Trust Holdings Inc. (SuMi Trust Holdings) have agreed to establish a joint venture, 51 percent owned by UBS, that will offer products, investment advice and services beyond what either UBS Global Wealth Management or SuMi Trust Holdings is currently able to deliver on its own. The JV will open UBS’s current wealth management customer base to a full range of Japanese real estate and trust services, while SuMi Trust Holdings’ clients – one of the largest pools of high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals in Japan – will be able to access UBS’s wealth management services, including securities trading, research and advisory capabilities.

“No wealth management firm today provides this range of offerings to Japanese clients under a single roof. UBS expects the new joint venture to fill this gap by offering expanded products and services to clients from both franchises,” UBS said in a statement. This is the Japanese market’s first-ever wealth management partnership developed between an international financial group and a Japanese trust bank. Subject to receiving all necessary regulatory approvals, the two companies plan to begin offering each other’s products and services to their respective current and future clients from the end of 2019. Also subject to approvals, these activities will ultimately be incorporated into a new co-branded joint venture company by early 2021.”

The rest of this article can be found at investordaily.com.au.

Rate cut does not mean economy is weak: Frydneberg, Lowe

Posted by Anton Murray Consulting on . Posted in Market Commentary

InvestorDaily

Treasurer Josh Fryendberg and RBA’s Philip Lowe have both maintained that the decision to cut rates was not due to a weaker economic outlook despite new data suggesting that it is. Tuesday’s rate cut from the RBA brought the rate to the historic low of 1.25 per cent after holding steady for two and a half years. Treasurer Josh Frydenberg said the cut would be welcomed by many Australians and stood by Mr Lowe in declaring the economy strong.

However, the Australian Bureau of Statistics released the quarters national accounts which suggested that the economy was not as strong as had been expected. The ABS reported that annual growth had slowed to its lowest rate in over five years as it grew by just 0.4 per cent in the march quarter to be up 1.8 per cent over the year. This marks the slowest growth since the third quarter of 2009, and while higher than last quarter’s 0.2 per cent growth it was still below market expectations.

The rest of this article can be found at investordaily.com.au.

RBA Cuts Interest Rates to a Fresh Record Low

Posted by Anton Murray Consulting on . Posted in Insights

ABC

The Reserve Bank has cut its official interest rate by 0.25 percentage points to a new record low of 1.25 per cent. While it is the first change in the RBA’s policy setting since August 2016, it was a widely expected result. The RBA governor Philip Lowe effectively flagged a rate cut in a speech last month.

The futures market had priced in a 100 per cent likelihood of a cut at the June meeting, with another cut expected by October. All 43 economists surveyed by Refinitiv had also pencilled in a rate cut this month, while 80 per cent of them also expect a follow-up move in August. The RBA has been under mounting pressure to stimulate a clearly faltering domestic economy, with retail sales figures out this morning showing consumers had cut back their spending.

The rest of this article can be found at abc.net.au.

Compliance Culture Must Start with ‘Why?’

Posted by Anton Murray Consulting on . Posted in Insights

InvestorDaily

A good culture of compliance within wealth management businesses must start with why certain regulatory measures are being implemented in the first place, according to a panel of compliance experts. Speaking exclusively on the InvestorDaily webcast yesterday, Advice Compliance Support managing director Nikolas Kloufetos said that staff they need to understand why they’re undertaking compliance measures, noting it’s not enough for staff to simply be aware of them. “For example, you’ve got 10 documents and need to make sure [a certain] sentence is on all of them. Well, why are you doing that?” he said.

“If you start off with that premise then you might actually end up with a more concise document by removing stuff that may not need to be there. That’s just one example – maybe some kind of training, not necessarily on how you do it, but why you do it, and what the impact is across the organisation and on the customer.” Mayflower Consulting founder and chief executive Sarah Penn noted that, in an organisation with a good compliance culture, the customer has to be at the heart of what people do. However, she added that organisations also need to think about the current customer in the future, and not just in the present.

The rest of this article can be found at investordaily.com.au.

Frydenberg urges banks to pass on any RBA rate cut in full

Posted by Anton Murray Consulting on . Posted in Insights

SMH

Treasurer Josh Frydenberg has personally urged the nation’s biggest banks to pass on all of an expected 0.25 percentage point cut in official interest rates on Tuesday as the Reserve Bank of Australia seeks to drive unemployment down towards 4 per cent. The RBA is tipped to take the cash rate to a new record low of 1.25 per cent following its monthly board meeting in what will be the first loosening of monetary policy since August 2016. A quarter percentage point cut in mortgage lending rates would save someone with a $400,000, 30-year mortgage $67 a month in repayments if it was passed on in full.

Mr Frydenberg, who met with Commonwealth Bank chief executive Matt Comyn on Monday after similar meetings with other major bank CEOs in recent days, has personally made the case that they should pass on all of any cut in official rates from the current 1.5 per cent. “I expect all banks to pass on the benefits of sustained reductions in funding costs,” he said. Markets and economists are expecting the cut in interest rates after RBA governor Philip Lowe used a major address last month to argue the country had to “do better” than the current jobless rate of 5.2 per cent.

The rest of this article can be found at smh.com.au.

Government Encouraged to Commit to 12% Super Guarantee

Posted by Anton Murray Consulting on . Posted in Funds Management News

InvestorDaily

The Australian Institute of Superannuation Trustees has called on the government to raise the super guarantee to 12 per cent. The AIST chief executive Eve Scheerlinck said that the member funds were committed to working with the government for better retirement outcomes for Australians. “We will continue to strongly advocate for policies that improve the fairness and sustainability of superannuation for all Australians, which includes a commitment to raising the Superannuation Guarantee to 12 per cent as scheduled,” Ms Scheerlinck said.

The current super guarantee is 9.50 per cent and isn’t scheduled to rise until the second half of 2021 when it is scheduled to rise to 10 per cent. Labor during the election campaign said it would increase the super guarantee from 9.5 per cent to 12 per cent sooner than the Coalition. However, the government made no such promise and currently has no plans to change the guarantee.

The rest of this article can be found at investordaily.com.au.