The rescue packages of financial institutions in developed countries around the world spurred a rethink of capitalism. Debt is now a dirty word and Keynesian economics is back in favour on the back of government stimulus packages around the world.
Negative returns, the fall of big-name institutions, failed broking firms and frozen redemptions all came together in what one industry insider labelled ‘the perfect storm”.
For our year-in-review issue, Investor Weekly spoke to a number of players across the industry about how they are steering their firms through these uncharted waters.
While these issues have tested their mettle, a key focus emerged from our interviews – advice.
Right now the industry is locked in a debate over advice remuneration, with industry funds pushing for a ban on commissions. The fee debate aside, another quarter of negative returns could potentially see people looking at their super on a short-term basis rather than for the long haul.
Advice and financial education will play a critical role in managing the expectations of the community as they face another year of torrid markets.
It was also Superannuation Minister Nick Sherry’s first year in the job. Despite the challenges of the markets, the industry still hopes adequacy is back on the Government’s agenda for next year.
Next year we will no doubt be in for another period of change. And on the issue of change, Investor Weeklywill also be doing a bit of transformation of its own.
We will be looking at boosting our online content. Given how financial markets have been able to completely transform themselves in a matter of days, our online strategy will offer our readers more up-to-date information and lessen the recent tendency to write “as this magazine goes to print”. We will keep you all posted on the details.
On behalf of the team at Investor Weekly I would like to wish all our readers a very merry and joyous Christmas and fabulous New Year.
