Weekly Wrap…NAB Wealth to refund customers after Navigator platform error

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NAB Wealth will refund customers after it discovered during a review that some of its Navigator platform customers had incorrectly been compensated after an investment income error.
NAB Wealth discovered the original problem and compensated customers in December 2012.  It self-reported the error to ASIC and has kept ASIC informed as it carried out an independent review of the investment income error by PricewaterhouseCoopers (PwC). The review identified a small amount of additional compensation required.  All affected customers are expected to be refunded this additional compensation as soon as possible. As a result of the review, NAB Wealth is enhancing the operating effectiveness of the Navigator platform to prevent future errors in the allocation of investment income to customers.
 
Survey findings from the recent MLC Adviser Roadshow “Let’s Save Retirement” found that nearly 50% of the 448 advisers surveyed nationally, rated longevity risk as the single biggest risk to clients meeting their retirement plans.
Out of the five risks identified by keynote speaker Moshe Milevsky Finance professor at York University in Toronto, advisers rated sequencing risk the second biggest risk (25.45%). Most people are familiar with sequencing risk however the order of returns matters when drawing down funds in retirement. A negative return in the early years of retirement can have a disproportionate impact on the sustainability of savings.  The five risks identified by Professor Milevsky include Sequencing, Longevity, Inflation, Consumption and Execution risk, with the latter highlighting the importance of financial planners in helping retirees manage these risks.
 
The Defence Bank has expanded its offering to members and potential members with the launch of a new superannuation and pension product.
Called Defence Bank Super, the new product has been designed for members in either the accumulation or the retirement stage of life. The CEO of the Defence Bank, Jon Linehan, says the decision to establish a superannuation product is part of this mutual bank’s strategy to provide a full suite of products to Defence Bank’s more than 90,000 members, as well as new members.
 
Townsends Lawyers have appointed senior superannuation, estate planning and tax lawyer Brian Hor as ‘Special Counsel – Superannuation & Estate Planning’.
The appointment adds to the firm’s capacities in wealth protection services increasing their services in sophisticated legal advice to accountants, financial planners and their clients in the areas of superannuation, estate planning and taxation. “Brian brings a wealth of experience to our firm in his fields of excellence.  His appointment is especially timely as we’re about to launch our new estate planning offering and early indications are that demand for the service will be high,” said the principal of the firm, Peter Townsend.
 
ING DIRECT has gone beyond its SuperStream requirements and made it easier for customers to rollover and consolidate their super through a simple, online solution within its Living Super product.
“Previously the rollover process was cumbersome and filled with paperwork, we’ve made it simple and fast, which is another step towards giving customers greater choice in what is one of their biggest financial commitments, “ said ING DIRECT executive director of customer, John Arnott. “It’s all part of improving the digital experience and putting the customer back in control of their superannuation.
 
Certitude Global Investments (Limited) has appointed BNP Paribas Securities Services as custodian and administrator for 14 unit trusts.
The trusts have almost $1 billion in assets under management. Certitude is an independent provider of global investment manager skill, selecting leading active investment managers from around the globe and bringing their expertise to Australian investors. These include Threadneedle Investments (UK), Lighthouse Investment Partners LLC (US) and GaveKal Capital Limited (Hong Kong) and Columbia Management Investment Advisers LLC (US).  “Certitude needed a global custodian that understood our future growth strategy in Australia,” said Craig Mowll, CEO of Certitude.
 
Australia has been ranked 7th of 54 biotech nations according to the Scientific American W. scorecard.
Australian biotech should prosper due to the additional demand generated from an aging population, greater life expectancies and improving healthcare infrastructure in emerging Asian markets, said Biotech investor Australian Ethical.

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