Forum Replies Created
Hi all,[biggrin]
Please get inolved and informed.. A quick way could be to go see Al Gores movie ” An Inconveneint Truth”
Hi Cazmeister ; I hope my writing has encouraged others to see this movie, it presents global warming in lay terms and a DVD has now been released and I suppose it will be available for hire shortly. Another great source of information for those who prefer to read is “The Weather Makers – The history and future impact of climate change†by Tim Flannery.
http://www.publish.csiro.au/nid/18/pid/5172.htm
Australia’s greenhouse emissions were 28.2 tonnes per capita in 2004 and is the highest per capita in the world To see how you can contribute to lowering the usage go to
http://www.sustainability.vic.gov.au/www/html/1517-home-page.asp
[As for onshore installations, I am sure the impact will be nowhere near as drastic as the possibility of rising sea levels that have been predicted over the next 50, 100 years etc.
Hi Spankey , I will leave the scarier bits till later.
Just to clarify your point on sequestration Bryce, there are currently 3 commercial projects and a host of pilot geosequestration projects around the world.
There isn’t however a commercial, or pilot I believe, capture project in a coal fired power station.Hi Markp ; I stand corrected, we even have one being talked about for Warnambool (VIC). My main point is that our federal government is deferring its options to the future, based on immature technologies ,I also can’t see coal companies volunteering to raise the cost of their product causing a consequent reduction in their use.
Spanky (love the name by the way)
Come to think of it does it involve bondage?[jerry]
Can we talk about nuclear now?
OkLoy Yang A is a 2000 MW brown coal power station located outside Traralgon in the Latrobe Valley of Victoria.. It is the largest single brown coal-powered station in the state producing 2,000 Mega watts(MW). The total production of the Latrobe valley is in the order of 8000 MW.
It is difficult to produce these amounts of power with alternate technologies; additionally there are problems with variability.
Denmark has embraced wind power more than any other country; however wind is only able to supply 20 % of their needs.
The UK leads the world in adapting to the challenge of greenhouse with some councils reporting a 70% reduction in greenhouse emissions.
France uses nuclear power to supply 80% of its needs and a mixture of other technologies for the remainder
The only ones that don’t recognize the seriousness of global warming are Australian federal politicians and George Bush (it doesn’t exist and we wish it would go away).James Lovelock is regarded as the pioneer of the environmental movement with the publication of his book “The Ages of Gaia†in the 60’s, his Gaia hypothesis is an ecological theory that proposes that the living matter of planet Earth functions like a single organism.
In his latest book “The Revenge of Gaia†he shocked greeenies by proposing that a massive epansion of nuclear energy programs is the only viable option to stop climate changes due the extent of the problem.Another prominent ecologest Bruno Comby, also suports nuclear and you can see his reasons here
http://www.ecolo.org/base/baseen.htm
Most Austrailians veiw nuclear as undesirable and express concerns about saftey,disposal of waste and bombs.The Chernobyl disaster and the Three Mile Island incident are brought to mind and fears of a terrorist attack also must be considered in the debate over nuclear.
However it may not be important what we think because, due to the latest IR laws, if the Federal Government wants to adopt a nuclear policy , then it can overide the wishes of State Goverments and construct them anyway.
Regards
BryceReplies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi all,[biggrin]
The way to stop or alter global warming is complex as it requires tackling on many fronts; the first step is to understand the mechanics involved. Once this is achieved further progress can be made.
To the skeptical, the changing weather patterns are not just happening in Australia, we are not experiencing a localized one off drought but an indication of things to come.
Weather is changing in every country; today the New York Times has an article “Some wonder whether this month will break the single-month record for rainfall in Seattle, 15.33 inches, set in December 1933.â€
Observations from meteorological organizations are recording extreme weather events all over the world such as monsoonal rains being heavier and two months earlier in Peru etc etc.Australian politicians are trying to downplay what is happening as they do not wish the public to be alarmed and are being lobbied by industries who wish to maintain the status quo. This is causing conflicting reports to the public.
Research paid by industries who profit from the maintenance of the present system (coal lobbyists etc) is biased, whilst bodies such as the CSIRO may be compromised as stated in the earlier post about a Four Corners program.
Once the public becomes more aware of the truth, based on hundreds of unbiased scientific reports rather than a few that are released by those who have the money and power to do so, then this will cause a change in political direction. This is the same process as the cancer /tobacco debate in the past.
There is no single answer to combating global warming but the first step is the recognition of it being a man made phenomenon. If we created it we can fix it, but to do so it needs to be tackled on many fronts. There is no one correct answer.
Just as we have learned to individually conserve water and this has been accepted as a normal part of our daily lifestyle. We can change our lifestyles to be more energy conscious.
On a personal level we have to make decisions about our individual energy consumption; for instance a decision to buy a hybrid car in the future rather than an SUV will reduce our personal generation of CO2 by approximately 70 %, a decision such as putting on a jumper instead of using a patio heater will have to become part of our thinking.
There is no single answer in how to reduce global warming but we must replace industries that generate excessive CO2 and other gasses or at least reduce the emissions that they create.
The federal government is talking about sequestration or the separation of CO2 at the source, and is quoting 15 year timelines. This technology is being piloted in a few places around the world but at the moment this is not commercialized anywhere and so the storage of the separated gasses is only theoretical.
The decision of an individual energy supplier to use sequestration will increase its production costs by 30 %, and without a level playing field would only result in its bankruptcy.
Until the government legislates for this level playing field sequestration will not happen.
Other energy sources can be intermittent in nature and generate relatively small amounts of power. The intermittency can be overcome by diversification, using solar, hydro (both on land and in the sea) and wind.
Intermittency can also be addressed through technology as pointed out by Spankey.
Technology will also address the efficiency of alternate energy sources and increase power outputs.
To address global warming all of the alternate technologies will need to be utilized.That leaves nuclear generation of power, and I will cover my thoughts on this very controversial subject in a later post and I expect it will cause much debate.
Regards
BryceReplies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi all [biggrin]
Why is that just because Johnny Howard starts talking about something, then all of a sudden it is a catastrophe
It is only a catastrophe if we continue to ignore it; what is lacking is the political will to change and that can only be resolved thru public awareness and the subsequent political response that this brings about, we have the power to stop it from being catastrophic
Solar power hasn’t been taken up by government because the oil and coal companies have such power over politicians, it’s as simple as that
Well said
I view it as an opportunity for enhanced future economic growth thru the creation of new products.
Historically the world has overcome past crisis situations by change; for example, the creation of the industrial age was caused by the prevailing economic conditions at the time.
My wife has created an environmental time line as part of her PHD studies that explains this much better than I can.But whether or not the globe is warming due to human contributions? Who knows,
More and more scientific evidence from around the world is stating that global warming is attributed to human contribution, but the statement is partly irrelevant, the point is that if we see a house on fire, do we continue to throw logs at it.
So how can the drought be linked to global warming,
Global warming has several effects, the evaporation rate in arid countries increases with a rise in temperature and this increases the expansion of desert areas. Hurricanes increase in intensity and frequency as they are caused by a heat differential over colder water. The formation of weather gradients (Highs and lows) shift their patterns, causing areas of rainfall to change from their traditional areas.
Maybe the government is just trying to deflect attention from it’s own problems at the moment ie AWB, Iraq invasion, etc
It could be equally postulated that some situations divert public attention from global warming.
Regards
Bryce Inglis
AR282821Investment & Implimentation manager
Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi all[biggrin]
Apart from the recent Stern report which excludes mention of Australia, various newspapers around the world ran the story below about a report released by the CSIRO which covers our surrounding area.
The story is reproduced below but if you google CSIRO and go to their web site, http://www.csiro.au, you will probably be as surprised as I was that there is no mention of any such report.
The Associated Press Published: October 9, 2006
SYDNEY, Australia Hotter temperatures and higher sea levels could devastate many Asian economies, displace millions of people and put millions more at risk from infectious disease, according to a climate change report released Monday.
The report, conducted by Australia’s main research agency, the Commonwealth Scientific and Industrial Research Organization, predicted global temperatures will rise by up to 2 degrees Celsius by 2030, particularly in the arid regions of northern Pakistan, India and China.
It said there is “little room for optimism” about the effects of climate change in the Asia-Pacific region unless governments take immediate action to curb carbon dioxide emissions.
Higher temperatures coupled with changing rainfall patterns, including more tropical cyclones, flooding and heavier monsoons, could put millions of people at a greater risk of malaria, dengue fever and other infectious diseases, the report warned.
It also predicted that millions of people living in low-lying coastal communities in Bangladesh, Vietnam, China and many Pacific islands could become displaced as sea levels rise by up to 50 centimeters (20 inches) over the next 65 years.
“Local and regional economies will be hit hard from chronic food and water insecurity and epidemic disease, as well as extreme weather events,” said the report, which was commissioned by 12 environmental, church, and nongovernment organizations.
The report’s author, research scientist Ben Preston, said the region’s poorest countries would bear the brunt of climate change. “For many of these nations, they rely on agriculture not only for subsistence, but also it’s a major component of their economies,” he said. “So significant impact to agricultural productivity affects the ability of people not only to feed themselves, but also to make money.”
Global warming could also alter or destroy the coastal ecosystems upon which millions of people depend for fishing or tourism-related income, Preston said.
He said many Asian countries have little or no information about the risks of climate change, and are totally unprepared to deal with its impact on their economies.
The report calls on the Australian government to help developing countries in the region invest in renewable energy sources and better prepare for large-scale natural disasters.
It also encourages Australia to review its immigration laws to take in people displaced by climate change.
I have been unsuccessfully searching for the report over a 2 week period and have just found it.
If you read this story, you will have a great deal of difficulty finding the report online, since they never mention who actually sponsored it.
And that’s because the research was led by Ben Preston, a research scientist at CSIRO, but the research was done for the Australian Climate Change & Development Roundtable [CCDR] — a fact that the article never mentions.
Hmm no wonder I couldnt find it.
To find the report — and the executive summary and the mystery second report (which is not at all by CSIRO) — go to http://www.ccdr.org.au and click on Reports.Regards
Bryce Inglis
AR282821Investment & Implimentation manager
Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi All[biggrin]
My wife is a full time PhD scholar in the field of sustainability and has studied environmental issues for over 10 years.
I wouldn’t call her a greenie (yet) but her findings have raised her concerns and have changed her attitudes.
Australia (to its shame) is one of the only two developed nations in the world who have not ratified Kyoto. The other is the USA.
I view this point in time as the dawn of public awareness about global warming issues and awareness of the suppression of scientific papers that have provided the proofs of its existence for decades.
An analogy is the Cigarette /Cancer suppression of scientific data during the 50’s and 60’s.
A link to a Four Corners program about the gagging of CSIRO scientists on climate change is below.
http://www.abc.net.au/4corners/content/2006/s1568867.htm
In the US approximately six months ago the New York Times reported that the government advisor on global warming was drastically altering scientific reports prior to their release to congress.
He had previously been employed by the petroleum industry and the day after his sacking (due to public outcry) he was employed by Mobil Exon.The easiest way to catch up on facts about global warming is to view the movie “An Inconvenient Truth’ which is a documentary explaining global warming in lay terms.
Other research is commonly found on the internet, Wikipedia links on some aspects are below;
http://en.wikipedia.org/wiki/Global_warming
http://en.wikipedia.org/wiki/Scientific_opinion_on_climate_change
Spanky
1)Global Warming is a REAL threat to the world as we know it, and to the world in which following generations will live.
I agree
2) At some point in time, be it in our lifetime or not, our resources such as coal and oil are going to diminish to a point that almost eliminates their long-term viability. They are not only going to pollute the planet for as long as we use them, they will simply become unavailable.
By then it may be too late as for if it is left unchecked it will lead to extinction of life as we know it.
Mathewc 73
About 3 months ago I researched the idea of installing solar panels on roofs of companies and then selling back the electricity.
This is already being done by a company in the US.
The link to the article in the New York Times is
http://select.nytimes.com/gst/abstract.html?res=F50B10FB3D5B0C728EDDA90994DE404482
As it is in their archives it will cost a small amount for you to extract it.
Spankey
Correct me if I’m wrong, but it is now a widely known fact that carbon emissions deplete ozone particles in the atmosphere. NASA recently published photos of the hole in the Earth’s ozone layer, which has expanded to record levels.
This is a separate issue concerning the use of the now banned CFC chemicals and the banning has resulted in the ozone hole starting to diminish.
Secondly, my own observations tell me that something is changing
Internationally the last 5 years have been the warmest on record.
While we may have an abundance of coal
This is part of the problem as it creates a group of lobbyist who pressure government to talk about changees that will occurr in 15 years time . 5 years ago the exact same statements were issued by government and I presume the same statement will be issued in another 5 years until the public place pressure on government to facilitate changes.
I knew solar cells were expensive
Both Technology and mass production will lower costs.
CT
I agree it’s high time we think globally and act locally.
That’s it in a nutshell
Platonic
Well said
Regards
Bryce Inglis
AR282821Investment & Implimentation manager
Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi All[biggrin]
I have never read an article that is so full of mistakes and inncorrect asumptions written by a student who has never been an employee in the Financial Planning Industry.
The first mistake he makes is in the first line of the article
“I am working on the sixth of eight modules to obtain my Diploma of Financial Planning and Advanced Diploma of Financial Planningâ€
There are not 8 modules in the process of obtaining the Advanced Diploma of Financial Planning – PS 146 Acreditation = 4 modules, DFP = 4 Modules, Advanced DFP = 4 Modules, this gives a total of 12 modules.
I enjoy the interesting and useful material but I am appalled by the implications of what I am encountering in the course.
This only proves that little and incomplete knowledge is dangerous.
He then continues to show his ignorance of what and how a managed fund works,and discusses the fees and charges associated with funds, somehow coming up with this statement.
There is no discussion of the trade-off between diversification and fees and charges. The more you diversify, the more you pay.
So he is saying that if you have 100% of your asetts in one fund you will pay less in fees than if you have 50 % of your assets equally in two funds.
This is wrong as you pay the same amount in fees for both cases as it is calculated on the total invested,which remains the same (basic arithmetic).You pay the least when you own shares directly. You pay substantially more when you own an index fund.
The idea behind a managed fund is to pay for the expertise and services of the fund managers to increase your return at a lower risk( if you do not have the time or the skills to do so yourself)
Factually 75% of DIY day traders lose their money within 3 years.I could carry on and demolish the rest of the article as I am only one quarter into it however you should have some idea of the quality of the article by now and the basic errors occuring all the way through it.
Terryw
I have often thought about doing that dip FP course myself. It would be interesting even if one were not intending to be a FP.It is very worth while to study for a Dip FP, but remember that just as a course in Mortgage Broking only teaches about the UCCC and supplies information about products it does not teach anything about the real world that good Mortgage Brokers engage in.
A qualification in financial planning will enable you to work in or may aid you working in collaberation with the industry.
It will not give you the right to give financial advice(even if studied at a masters FP level) as only a holder of an Australian Financial Services L icence or Authorised Representative can, and are registered with ASIC to do so.
Regards
Bryce Inglis
AR282821Investment & Implimentation manager
Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi.[biggrin]
When converting equity to cash to be used for investment purposes, it is better to use a split loan.
for example,
LOC no 1 is used for personal use and LOC no 2 is used for investments
This keeps the accounting side separate and defined and is less confusing for your accountant and the ATO.Note: If you are investing in markets that produce cash flow,then this is subject to CGT on the earnings (not on income).
Any income received by LOC 1 (personal) when transferred from LOC 2 (Investment) is subject to income tax.
The Income tax may be offset if using a negative geared investment.
I think.
General advice disclaimer etc.
Financial planners can only give tax advice in conjunction with a financial plan.Please seek the services of an accountant for further clarification.
Regards
Bryce Inglis
AR282821Investment & Implimentation manager
Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi all[biggrin]
“but a final repayment (unspecified amount) along with a division of the property’s growth over the term of the loan.(again unspecified )
They will lend the person money to buy property, with no repayments required, but their fee for this will be a percentage of the proceeds when the property is sold and your loan is repaid
Thanks Terry, but that may be in 20 years time, how do they pay wages ect in the meantime.I recall that Derivex used securitisation to raise additional funds to generate profits to operate and wonder if similar techniques are used here.
So will Nat join in or is she still enjoying her flying above the peasants lifestyle.
Regards
Bryce Inglis
AR282821Investment & Implimentation manager
Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi guys[suave]
Thanks for your contribution, but how do they make money to operate if repayments are not obligatory.
Greenway puts down $500,000 and they put down $500,000 without any monthly repayment expectations but with the flexibility to make some repayments and to pay off the loan sooner if they want to
I assume they would need to securitise the debt in some way to generate returns.
Regards
Bryce Inglis
AR282821Investment & Implimentation manager
Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi all.[biggrin]
“Can anyone recommend a good Real Estate Agent?”
Could you specify if they are alive or dead.
Regards
Bryce Inglis
AR282821Investment & Implimentation manager
Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi Debbie[biggrin]
Try this one
http://www.aussiestockforums.com/forums/?
Regards
Bryce Inglis
AR282821Investment & Implimentation manager
Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi Drollings[biggrin]
Just another thought, an accountant relative suggested using a trust with a company as the beneficiary. The company then pays all profits into the superannuation account of a retired person(s). As a contribution?
Or 1. with the initial establishment of the Trust and dependant on the Trust deed, the SMSF is appointed as a beneficiary with a nominal unit holding, and on retirement the realization or transfer of assets occurring in- species within the Trust.
Or 2. you could receive an income payment from the Company ATF Trust and simply contribute it to Super.and once July 1 2007 rolls around, that person will then be able to withdraw that money tax free (only tax paid is 15% contribution tax).
At this stage this has only been proposed by the Treasurer and is not yet Law
May be a way to minimise tax liability for short term renovation/development profits.
The SMSF would have to own the asset.
If the money changes hands to a third party it would be defined as income to the Third party and be taxable.
If this happens before retirement, then the transfer of money will breach the sole purpose provisions of SISA causing the ATO and ASIC to be very annoyed with you.
Financial Advisers can only give tax related advice in conjunction with a financial plan, could you please check this with your Accountants.
Any how this has gone off topic.
Regards
Bryce Inglis
AR282821Investment & Implimentation manager
Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi Time matters[biggrin]
I would suggest that you research this area of the site as the general topic on structures has been covered many times.
Advice on basic structure set up is quite common.The following is a brief overveiw of some of the considerations that can be taken ,however I encourage you to undertake further research on your own or to seek specific proffesional advice.
Other details such as Capital Gains Tax Issues,in species transfer of funds to a SMSF and any other issues that would apply to your particular situation are not covered in the reply.The usual Trust set up to deal with property is a Hybrid Trust as it can deal with negative gearing issues and can be used to allocate Income or losses in a tax effective manner to the beneficiaries of the Trust.
A Trading Company which is limited in its liability (to the amount of shares issued )can also be chosen to be the Trustee of the Trust.
The result is for the Trust to hold the assets with the administration and the running of the investments by the Company.
Regards
Bryce Inglis
AR282821Investment & Implimentation manager
Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi as41[biggrin]
Why not talk to one of the brokers who give their time and assistance to enquiries on this site.
Regards
Bryce Inglis
AR282821Investment & Implimentation manager
Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi all[biggrin]
There is a property investors group that meets on alternate months at either Swinburne TAFE in Hawthorn or at Victoria university in Footscray.
The Meetings are usually held on the last Wednesday of each month.
Information on these meetings is posted at another site .The link to this ishttp://groups.msn.com/PropertyInvestment/messageboard.msnw
Members of the Sommersoft chat room also meet there.
Regards
Bryce Inglis
Financial Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi All [biggrin]
given the hypothetical situation of my wife/girlfriend seeking part of a property owned by a Trust, that I am a beneficiary of,
Trusts are set up to automatically cover immediate family including unborn children as beneficiaries
Leaving out tax implications for setting up trusts and focusing on asset protection
Asset protection is best achieved by appointing a Pty Ltd Company as Trustee where the liability is limited to the amount of company shares issued. This can be a small amount for example 10 shares valued at $1.
The company acting on behalf of the Trust (as a trading company) does not increase its worth with the actual assets being held by the Trust.
However if a bank loan is involved this can be negated as it is usual for the Bank to arrange for the Directors and/or Trustees to give guarantees to the bank as a condition of the Loan.Regards
Bryce Inglis
Financial Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi all[biggrin]
I was flipping through a Margaret Lomas book and she says that trusts are a waste of time and do not really offer any protection.
What do you guys think of her statements ?It seems a popular ‘fad’ amongst accountants currently to sell a Trust structure on the basis of providing asset protection alone. Since Accountants may not be universally trained, or up to date in commercial law, they often miss what the full legal situation is surrounding Trusts.
Why TRUSTS are becoming so popular, apart from being cheap and easy for accountants to set up at a profitable price, is because of the (mistaken) belief that a Trust can somehow own or control assets in its own right. That is not true.
A Trust is NOT a legal entity in the sense that it can own anything itself. Only the trustees or members as trustees can legally own the assets of the trust, albeit jointly, on behalf of the members or beneficiaries of the Trust, or a separate Trust as beneficiary, or beneficiary-company.
Trustee Members and beneficiaries can still be individually sued and their assets seized or their share in assets held jointly with others frozen, if they are found liable for the recovery of the full amount owed.
A Trust therefore gives no added protection in a tort (civil claim for loss or damages through the courts) that can accurately target responsibility under the CORPORATIONS ACT at any individual involved in a company in some way, which may have defrauded or failed in a duty of care to, a client or supplier, or even another employee.
So, what is the upshot of this long description? – Simply that setting up a trust to avoid having your assets attacked would give you no additional security, if you are thought to have been complicit in any illegal activity by the company or any failure of duty of care in a tort.
You can still end up with a judgement debt against you personally that will defacto force you to re-acquire the legal ownership of those assets from the Trust and sell them, or at least direct your trustee to sell, any assets you may now only hold (beneficially) through the Trust.
Nevertheless, a trust does let you decide which assets you keep and which you sell, rather than a court or administrator/liquidator making that decision.
The fundamental purpose of a trust, from a legal point of view, is to distribute funds or income held, or received, in trust.Regards
Bryce Inglis
Financial Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi Splosh [biggrin]
Actually this idea is not new and was done in the late 1900’s, and you can read about it if you borrow a book titled “The Land Boomers†from the local library as its been a while since its last print.
My copy was inherited/ borrowed / stolen from my Mother-in-law. The name of the author is Michael Cannon and the publisher is Melbourne University Press.
For Instance the railway line built to Laverton in the Western Suburbs ended in a Paddock, the only building, apart from the Station, was a land sales office owned by a Politician, similarly there was a Railway from Melbourne to Oakleigh, which by a direct route nowadays takes half an hour, this took over 4 hours via a circular route past various land offices. Needless to say it turned into a flop.
It was the time of people such as Tommy Bent who built a private Tramway between St Kilda Junction and the city that bears his name –Bentleigh.
Most of the tram and train lines in Melbourne were started as floats with commercial outcomes in mind.During this time the first mansions appeared such as Rippon lea and most of the fine old buildings in both Melbourne and Sydney were also built during these boom times.
It was also the scene of the horrific crash which followed and caused an unemployment rate of over 50% with banks crashing commonly. It was also the time of Sir Issac Issacs who laid down the foundations of our modern Company and Banking Laws.
So I am sorry to bear the tidings that your idea is not new but it was well thought out anyway.
Regards
Bryce Inglis
Financial Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Hi all[biggrin]
It appears that in one of my earlier posts a complaint was made that matters were unclear.
The following is reproduced from ASIC explaining actions that were undertaken by them and show a highly complex process due to the limitations of enforcement acting as a Federal body when dealing with State related matters.
The link to the full article is
http://www.asic.gov.au/asic/asic_pub.nsf/byheadline/Westpoint+bulletin?openDocument
1. What is happening with the company at the centre of Westpoint, Westpoint Corporation Pty Ltd?
The Federal Court in Perth has ordered the winding up of Westpoint Corporation Pty Ltd. The Australian Securities and Investments Commission (ASIC) applied to wind up the company on grounds of insolvency.The court appointed PPB as liquidators of the company.
ASIC believes Westpoint Corporation is responsible for arranging, managing and co-ordinating Westpoint’s property projects as well as holding money for other group companies.
ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors.
2. Have any other Westpoint companies been placed in external administration?
A provisional liquidator has been appointed to Westpoint Management Limited. Westpoint Management is the trustee of the 60 Market Street and 297 Murray Street Trusts, and responsible entity of the Paragon Commercial Syndicate, the Warnbro Fair Syndicate and the Westpoint Income Fund.The Supreme Court has appointed PPB as provisional liquidators to Westpoint Management following consultation between ASIC, the receivers and managers over parts of the company’s property, and PPB.
Under the orders, the provisional liquidators are required to provide a report to the Court and to ASIC regarding the winding up of the company, as soon as reasonable and in any event, within two months of the orders. ASIC will review that report to help it determine the future of the company’s Australian Financial Services Licence and its status as responsible entity of the managed investment schemes
3. Where has the money gone?
Instead of going into individual property development projects as Westpoint investors were led to believe, ASIC alleges investors’ money was pooled and used by Westpoint for various purposes of the group.The intermingling of investors’ funds must now be unravelled by the receivers and liquidators of various Westpoint entities. This will take some time.
4. What happens to investors whose money is locked up in Westpoint schemes?
Investors’ money remains tied up in the schemes pending the determination by liquidators of the most effective way to sell the assets in an orderly process. This process is likely to take some time.5. Why didn’t ASIC act earlier to regulate the Westpoint Group and prevent the loss of investors’ money?
ASIC commenced action against Westpoint companies in 2004 when it became concerned that they were operating outside the provisions of the Corporations Law. ASIC sought a determination by the court that Westpoint was promoting a financial product and a managed investment scheme.ASIC’s appeal from the original court decision was heard recently. The court’s decision in these proceedings will determine ASIC’s jurisdiction over the activities of Westpoint and the avenues it can pursue in respect of Westpoint directors and the financial planners and advisers involved.
6. Can it happen again?
Investors should be aware that if they put their money into high interest products they are accepting high risk. Some investment schemes are deliberately structured so that they fall outside the provisions of the Corporations Act. Those schemes, many without an approved product disclosure statement or prospectus, carry the highest risk.I hope this clarifies why it has taken a long time for ASIC to deal with Westpoint.
Regards
Bryce Inglis
Financial Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
Howdy doody All,[exhappy]
Its that pesky uninformed dude again, except now I need a wash[glum]
Bryce ….my comments were directed at your post higher up, which you have to agree didn’t make a whole lot of sense, and not at your choice of profession.
Sometimes I just dash stuff of the top of my head because there is nothing worse than typing a long epistle only to find the thread locked.
Can you advise me of which particular post that you are referring to and the points of confusion that you are concerned about.
.
If you want clarification on anything I am glad to oblige.I am very happy that you have shared your insights on life in a sincere way for it shows me that we can have pleasant discussions, where we may have different viewpoints without the annoyance of moderators locking the thread.
Regards
Bryce Inglis
Financial Advisor
[email protected]Replies on this site are intended as general information only, as any specific investment solutions/advice must only be given in accordance with the requirements set out in the Financial Services Reform Act 2001 and the ASIC guidelines as set out in PS146.An appropriate professional should be consulted for specific advice
