Employee Benefits
just after a market correction or an older investor invested 100% in a stable unlisted property portfolio being moved to cash. I know of one provider which will only switch any excess above the allowable limits to money market. This is likely to be the case for a few providers but probably not all. However, read the section below.
now manage to engage or not we’ll need to monitor our clients’ asset allocations in the future since their asset allocations will, in almost all cases, change from quarter one 2012 and WILL, failing our intervention, be different to what it is now.
What should advisors be doing ? 7KH ÀUVW TXHVWLRQ LV SHUKDSV ´:LOO DQ\ DXWRPDWLF VZLWFK EH JRRG IRU P\ FOLHQW "¾ ,I WKH DQVZHU LV ´12¾ WKHQ WKH QH[W step is to engage with our clients ASAP. Bearing in mind that we’re hastily approaching the end of year, festive season and traditional holiday time. NOW is the best time to begin the process of switching our clients/members to Reg. 28 compliant portfolios or a combination of portfolios the result of which will be compliance.
One good thing about all this is that it gives us one more reason to stay in touch with our client base. I’d go as far to say WKDW WKRVH DGYLVRUV ZKR GR QRW HQJDJH ZLOO ÀQG WKHLU FOLHQWV migrating to advisors who have the tools and management systems which will facilitate compliance whilst also aligning the client’s full portfolio for optimum outcomes. I think we’ll see a plethora of communications to members/policyholders very soon to say that unless they make the necessary changes the default switch will be X.
Some asset managers/assurers have developed some calculators to assist advisors and clients in this regard. In most cases, though, these merely take Reg. 28 into account and nothing else about our clients. So, it’s imperative that we engage with our client-base invested in these products so that neither they nor we are caught unawares by a forced switch, possibly not suiting our clients or being ill-timed. Whether we
I found it interesting while “googlingâ€? Regulation 28 that $6,6$ KDV SXEOLVKHG D OLVW RI 5HJ FRPSOLDQW IXQGV numbering 64, which are not that many considering the investable universe of collective investments, numbering RGG IXQGV DGPLWWHGO\ WKHUH¡V VRPH GXSOLFDWLRQ KHUH 1HYHUWKHOHVV LW RIIHUV RQH SHUVSHFWLYH