"We feel reassured that Pascoe Barton are managing our funds with utmost scrutiny and care..."

C & D


Beware of Potential Scams

As authorised financial advisers, it really annoys us that people continue to be ripped off by “investment scams”, or by companies that are poorly managed or have little in the way of controls to ensure that their investor’s interests are safeguarded.

Investing in fads is fraught with danger. Those who invested in gold a number of years ago when the prices were high and didn’t get out at the right time, will have made some significant either realised or unrealised losses.

Taxing Short Term Property Investments

The recent pre-budget announcement that property transactions, in which properties bought and sold within two years would be taxed at the investor’s marginal tax rate appears to have struck some accord. It does not seem to be a concern to the Auckland Property Investors Association, as their members typically buy property as a long term investment strategy. The budget will be presented by the Minister of Finance on Thursday 21 May.

Reserve Bank wants to Protect Reverse Mortgage Lenders

Over the years we have cautioned about people taking out reverse mortgages. We believe it is usually more prudent to consider alternative options rather than taking out a reverse mortgage for those who are cash poor and asset rich. They were a traditionally expensive way of obtaining money for funding one’s lifestyle. Even now, borrowing costs are significantly higher than traditional mortgage costs.

Regulation is designed to Enhance Trust

Prior to the regulation of financial advisers in 2011 just about anyone could put up a sign and call themselves an adviser. To obtain a share broker’s licence required filling out a form, obtaining sign-off from the Court Registrar and the payment of a fee. There was no requirement for any competency or qualifications.

Regulation was designed to give the public some confidence in financial advice and to get rid of the inevitable rat bags that seem to plague virtually all professions.

Investment Plans – Comparing Plums with Apples

In today’s regulated financial environment, it is not just a simple process to obtain financial advice. It has to be quantifiable. You should first ascertain the status of a proposed adviser. Only Authorised Financial Advisers (AFA designation), can offer advice on a wide range of investments to most investors. Registered Financial Advisers (RFA designation) cannot legally do so.

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