News in Brief: Westpac survey shows many unaware of new LVR laws

by NZ Adviser28 Oct 2015
Westpac survey shows many unaware of new LVR laws
A Westpac NZ online survey of 2000 property owners has revealed that property investors, especially Auckland-based, are not in the loop about the new loan-to-value-ratio (LVR) regulations coming into effect on 1 November 2015.

The survey found 5% knew when the changes will come into effect, nearly 30% had not heard anything and 53% had heard of it but didn’t know the details.
17% of current property investors looking to buy again in the next 12 months hadn’t heard of anything about the pending changes and 50% had heard about them but knew no details.

New chief distribution officer at Sovereign
Sovereign has appointed a Richard Klipin as chief distribution officer, the National Business Review reports, where he will be accountable for the distribution of insurance products and services to financial advisers, bank and corporate partners country-wide.

Sovereign, Chief Executive Officer, Symon Brewis-Weston says, “An important area of focus for Richard will be supporting distribution networks through a time of changing customer expectations, potential regulatory change and partnering with these networks to provide quality advice and support to customers.”

Klipin brings 26 years of experience to the role, most recently as chief executive at Millennium 3 of ANZ Wealth and will commence on 9 November 2015.

Australian interest rate hikes moving away from OCR
The latest hikes in interest rates by Australia’s major four banks recently are increasing the gap between what banks are charging borrowers and the Reserve Bank’s official cash rate, according to Business Insider Australia.

AMP Capital chief economist Shane Oliver says, “The widening gap applies whether standard or discount variable rates are used. Because it’s borrowing rates that ultimately count for the economy rather than the cash rate, the RBA has had to compensate by cutting the cash rate more than would normally be the case in both the 2008-09 easing cycle and since 2011.”

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