Agribusiness image to get a make over
TheAustralian Securities and Investments Commission(ASIC) andvan Eyk Researchwill meet with financial planners in Sydney later this month to combat a negative market perception towards agribusiness products.
Hosted by theFinancial Planning Association(FPA), the seminar will aim to illustrate to planners the position of both ASIC and van Eyk towards these types of products and answer any adviser concerns on the issue.
Van Eyk associate director Rashmi Mehrotra says the biggest myth about agribusiness products in the market is that all schemes are “dodgy” and therefore shouldn’t be considered as viable investments.
Mehrotra says that although advisers often think they will end up being sued if they use the products, there are legal and effective ways to go about recommending them to clients.
“The purpose will be to give some comfort to advisers that if you do things properly, are properly researched and have a sound business, there is no reason that ASIC would come down on you,” Mehrotra says.
Van Eyk has looked at 350 agribusiness schemes over four years, and Mehrotra says although it would recommend only five to seven per cent of these, this small portion should be considered by advisers.
She says that agribusiness products should be “like heaven” for planners, as they are able to claim a tax deduction for their clients while at the same time building up their assets.
According to Mehrotra, agribusiness is still an immature industry and bad schemes still need to be “weeded out”.
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