UP FRONT | EDITORIAL
2021: Interesting times
T
his year has a few knowns. But I suspect many unknowns and unexpected twists and turns will emerge as we journey towards Christmas 2021. An easy known is what happens next month. A new regime for financial advisers. Hopefully, everyone is prepared for what lies ahead but I have a sneaking suspicion that as the year goes on
advisers will change their minds and be reconsidering their business. Advisers are being lulled into this idea that the new regulatory regime will be pretty straightforward. Over time it is likely to get more complicated and burdensome thanks to the regulators and conditions imposed by product providers and the likes of professional indemnity insurers – we have seen that already. The worry is good advisers will leave (many have already) and advice will get more and more homogenised. While adviser firms may get together it will be interesting to see who emerges as the true voice of financial advice. It seems like the Financial Services Council is gradually inching its way into the territory of Financial Advice NZ.
Investment advisers face a unique challenge at the moment. Where do they find income and how do they build portfolios in the world of low-interest rates and ballooning asset prices. I'd suggest modern portfolio theory does not work in this environment. For risk advisers, it seems their challenge will be keeping life companies happy around their advice process and conduct. These are only a few issues of what lies ahead. Suffice to say 2021 is going to be interesting.
Philip Macalister Publisher
CONTENTS | ASSET 1
LEAD 14
WHAT LIES AHEAD IN 2021? After the disruption that was 2020, what do the experts from AMP Capital predict for investment markets this year?
22
INSURANCE Seize the moment, for yourself and your business, writes Naomi Ballantyne.
07
10
05
EDITORIAL It's going to be an interesting year for advisers.
STRATEGI Need to upskill as the new regime approaches? Strategi Institute can help.
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Publisher
Philip Macalister
PEOPLE New appointments for Cigna; Mint adds an investment analyst; plus changes at Saturn Advice, Perpetual Guardian and nib.
12
24
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PROFILE What makes Milford’s CEO Mark Ryland tick? Daniel Smith finds out.
A North Island adviser's Code breach in detail.
REGULATION
INVESTMENT COMMENTARY David van Schaardenburg discusses short-termism and client risk exposure.
32
PRACTICE MANAGEMENT Russell Hutchinson on insurance fraud and how it can be reduced.
34
KIWISAVER MJW survey shines light on funds.
Moved offices?
Photography Credit
ASSET is published by Tarawera Publishing Ltd (TPL). TPL also publishes online money management magazine Good Returns GoodReturns.co.nz and TMM – The Mortgage Mag.
Naomi Ballantyne, Greg Fleming, Andy Gardner, Russell Hutchinson, Vicky Hyde-Smith, James Maydew, Rosewill Consulting, Altaf Shaikh, Daniel Smith, David van Schaardenburg, Michael Taylor, Joseph Titmus
Jill Lewis P: 07 349 1920 E: jill.lewis@tarawera.co.nz
Samantha Garnier
30
Contributors
Subeditor
Design 4 | ASSET NOVEMBER 2020
Michelle Forster’s globetrotting career has set her up well for a NZ-focused future.
Compliance experts Rosewill Consulting with their top tips for the year ahead.
Josh Rose, Luca Bravo, Christian Perner
Dawn Adams
ADVISER PROFILE
REGULARS
FADC
Editorial Manager Joanna Mathers
28
FEATURES
UP FRONT 04
NEWS FADC finds agains AFA; reaction to NZI PI decision.
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