Does your Outsourced CIO fit within your governance structure and offer the governance you need? It is a vitally important, yet often overlooked element in the development and maintenance of an enduring and resilient investment program. But what is good governance? And does it really make a difference? The strength of the global capital markets of the last decade or more has meant that most financial organisations have done fairly well, regardless [...]

The COVID-19 pandemic not only caused older Australians to worry about their health and finances, it reportedly increased the incidence of elder abuse. This includes an increase in reported financial elder abuse, something financial advisers should be aware of. In this ethics article, sponsored by GSFM Pty Ltd, elder abuse and the ethical ramification for advisers is discussed. A 2020 study[1] of elder abuse observed financial abuse increased substantially over [...]

The gatekeeper to the pool In an earlier article we explained risk pooling, a foundational concept in insurance. By aggregating together people with similar risks, those risks can be spread. A frequently cited example is that of ancient shipping merchants [1], who would come together and effectively pool and share the financial risks of one of their boats and/or cargo being lost at sea. A key enabler for life insurance [...]

Life underinsurance has been a much discussed – and debated – topic for more than a decade. Denounced by some critics for the perceived self-interest of those seeking to shine a light on the issue, recently released data[1] confirms the underinsurance gap is not only real, and significant, it is also widening. Structural developments within the sector are likely to exacerbate the problem further, posing challenges for advisers and their [...]