"We can, and do, rest easy, secure in the knowledge that our financial interests are in good hands..."

G & J


Capital Gains Tax –a Web of Unintended Consequences

New Zealand has had a capital gains tax for many years. Historically its use has largely been confined to property speculators, and smaller builders and their associates who often built “spec homes”. Some share market investors who made frequent share trades could also have fallen into the capital gains tax regime.

There have been plenty of arguments for an updated capital gains tax regime. No one in New Zealand has been able to come out with a capital gains tax proposal that is actually workable and with quantifiable results.

Is it Difficult to get Independent Investment Advice?

Recently we read an article on Good Returns (www.goodreturns.co.nz). It said “Unless you’re very wealthy, or struggling to get by, it is very difficult to get independent financial advice in New Zealand, one researcher says”. That researcher was Aaron Gilbert, a senior lecturer in AUT’s business school, and a fellow at the Auckland Centre for Financial Research.

Investment Holdings

Last week, TV3 political editor Paddy Gow broke the news that Labour Party Leader David Cunliffe had a pecuniary interest in investments that he hadn’t initially declared in a trust, namely ICSL. To some of us in the industry, it was obvious that Gow was technically wrong and did not properly understand the relationship that Cunliffe had with ICSL. It is not a trust!

Interest Rates Rises – It’s when, not if

It is only a matter of time before the Reserve Bank of New Zealand (RBNZ) increases the Official Cash Rate (OCR). A number of economists were predicting that the RBNZ Governor would have increased the OCR last week. Now they are talking about an increase at the April 24 OCR announcement.  If it doesn’t happen then, the chances are it will happen at the time of the 12 June Monetary Policy Statement and OCR announcement.

Who Pays the Adviser?

Many investors seek help in managing investments. The quality and type of help they seek can vary dramatically depending on one small detail. This is, who is paying their adviser. If you are paying the adviser, the adviser should be working for you.  This is irrespective of whether you are directly paying the adviser, or indirectly via a product commission. It is important to understand the nature of the relationship between you, your adviser, and the investments that the adviser recommends.

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