eWombat search  

Financial Planning News

Articles archive
Quarter 2 April - June 2023
Quarter 1 January - March 2023
Quarter 4 October - December 2022
Quarter 3 July - September 2022
Quarter 2 April - June 2022
Quarter 1 January - March 2022
Quarter 4 October - December 2021
Quarter 3 July - September 2021
Quarter 2 April - June 2021
Quarter 1 January - March 2021
Quarter 4 October - December 2020
Quarter 3 July - September 2020
Quarter 2 April - June 2020
Quarter 1 January - March 2020
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 3 July - September 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 3 July - September 2006
Quarter 2 April - June 2006
Quarter 1 of 2014
Articles
Philanthropy upswing
Market Update - 28th February 2014
SMSF investment process is broken, but a good financial planner can fix it
A behavioural barrier to successful saving
Spending of super lump sums
What the past can teach us about the current emerging turmoil
Spending control in a low-interest environment
Market Update - January 2014
The return of a resilient US
Putting financial literacy to the test.
No intention to retire
Outlook for Japan in 2014
Understanding Profit Metrics: Gross, Operating and Net Profits
Market Update - 31st December 2013
Super tax changes: winners and losers
Philanthropy upswing

 

PAF establishment numbers reflect adviser engagement and philanthropy upswing


 

 

 

 



     

 

 

Australian Philanthropic Services (APS) has experienced a significant increase in the number of individuals setting up private ancillary funds (PAFs), suggesting a growing number of financial planners who are having productive conversations with clients about structured philanthropy.

Chief executive officer of APS, Antonia Ruffell, says the firm has helped clients set up as many PAFs in the first nine months of the 2013-14 financial year as it set up in the whole of the 2012-13 year.

“Last year we set up 20 PAFs, and this year we have done that already, and it’s not even the end of the first quarter [of 2014],” Ruffell says.

“A couple of them are ones that we have transitioned into our service. A few are brand new. A few we have done establishment-only for, and they do not use our administration service. It’s exciting.”

There are now about 1100 PAFs in existence nationally, and while the concept shares many of the same characteristics as self-managed superannuation funds (SMSFs), PAFs are far less well known and understood by financial planners. Ruffell joined APS about 18 months ago and one of her first objectives was to raise the profile of PAFs.

“I’d done my first six months and I decided I was going to try to meet three advisers a week, and see what happens,” she says.

“I’d say the ones that really get it are the true high-net-worth [HNW] advisers. Everyone says that’s what they are, but they are really aspiring to it. There are pockets of advisers that really do deal with [HNW clients]. And they are the ones, generally, who are not transactional in their approach.”

Ruffell says talking to a client about setting up a PAF transcends the scope of a usual financial planning service.

“Talking about the loan you need for your house or your insurance needs – anyone can do that,” she says.

“These advisers engage with the family. It’s the values-based advisers.”

From January 1 this year, PAFs came under the jurisdiction of the Australian Charities and Not-for-profits Commission (ACNC). The Abbot government has signalled its intention to abolish the ACNC, and APS says if the abolition goes ahead it is likely to be in the second half of 2014.

“Nonetheless from 1 January 2014 all private ancillary funds (PAFs) came under its jurisdiction,” APS says in its Autumn 2014 newsletter.

“This means that all PAFs are now required to file an annual information return and many will also need to lodge financials. This is a requirement for all tax exempt charities.

“Importantly for PAFs, if you do not want personal details to be made public, you can have APS submit a form requesting the ACNC to withhold critical information.

“If the ACNC is abolished, this will likely take affect in the second half of 2014. The current plan is to replace the ACNC with a Centre for Excellence, but the question remains as to who the new regulator will be – the responsibility may return to the Australian Taxation Office (ATO).”

 

March 23, 2014
Simon Hoyle
Source:  Professional Planner    www.professionalplanner.com.au



28th-March-2014

        
FuturePlan Partners Pty Ltd, ACN 097 032 114, Corporate Authorised Representative of
SECURITOR Financial Group Limited, ABN 48 009 189 495, AFSL and Australian Credit License 240687,
Level 7, 530 Collins Street , Melbourne VIC 3000.