What are bank hybrid securities and what purpose do they serve? There are 3 types of bank hybrid securities: Capital notes; Convertible preference shares; and Subordinated notes. These products are designed to be loss-absorbing products that provide a layer of security for the bank’s depositors at the expense of the hybrid investors. Warning If the […]
Dover’s advisers know how seriously Dover takes its SOA review process. 100% compliance is a must, with a particular emphasis on the advice being in the client’s best interests and appropriate to the client, and an assumption that the client is conservative unless the client says otherwise and a reasonable financial planner would agree. Dover […]
Over the last few weeks we have reviewed several SOAs recommending annuities to clients. They have all been similar. The idea is a (very) conservative client concerned about the risk of losing capital pays say $500,000 to a life office in return for a fixed payment for life of say $20,000 a year. Variations are […]
Non-deductible debt is expensive debt. Non-deductible debt should always be paid off as a priority over any other investment. If your client earns more than $180,000 a year they face an effective marginal tax rate of 49%, made up of 45%, plus a 2% Medicare Levy and a 2% Temporary Budget Repair Levy. This means […]
Dover encourages direct share investments. In a post FOFA fee for service environment the first step in creating a viable and sustainable fee for service practice is to actually provide the service, not refer it off to someone else. In this context “the service” includes regular advice on specific share investments, with an emphasis on […]
Dover encourages advisers to recommend clients invest directly into the share market where it is appropriate to the client and in the client’s best interests. The first step in creating a fee for service based practice is to actually provide the service, and not merely refer the client to a fund manager who then provides […]
Disclaimer: This is a Dover Practice Note and is intended to be for information only. While it seeks to provide practical assistance and explanation, please note the guidance and examples in this Practice Note do not constitute legal advice.