#AceFinanceNews – PAKISTAN – June 27 – WASHINGTON: The International Monetary Fund (IMF) on Friday disbursed $555.9 million to Pakistan, confirming the country was on track with the conditions of its IMF loan program.
The IMF saved Pakistan from possible default by agreeing last September to lend it $6.8 billion over three years. The cash is being doled out in increments and could stop if Pakistan fails to institute reforms, including cracking down on tax evasion and privatising loss-making state companies.
Pakistan’s tax authorities in April said they would publicly shame defaulters by publishing taxpayers’ details in a directory for the first time. Only around one in 200 citizens files income tax returns, leaving the state begging foreign donors to help fund crumbling schools and hospitals.
The IMF disburses loan tranches after confirming a country is on track with the conditions of any bailout.
#AceFinanceNews – UNITED STATES – June 27 – (Reuters) – The National Association of Personal Financial Advisors (NAPFA)on Thursday barred its members from owning stakes in financial services firms that receive transaction-based compensation, as part of its push to promote fee-only investment advice.
NAPFA, which has about 2,500 members, has permitted members since 2004 to own up to 2 percent of a firm that receives commissions. The exception was meant to accommodate members who owned shares of common stock or a trust company, but NAPFA’s inability to audit its members and growing interest in fee-only compensation among its members and the public led to the change.
"This is about eliminating a sense of confusion in the industry for advisers and consumers," said Geoffrey Brown, chief executive of the Washington, D.C.-based planners group.
Removing the 2 percent exception will affect about 125 members, Brown said, adding he expects most to resolve their situation by the time they renewed their annual NAPFA memberships.
Those who don’t comply cannot be members.
#AceFinanceNews – BRUSSELS – June 27 – An independent Scotland would pay an extra £500 million a year to stay in the European Union, former UK prime minister Gordon Brown has told MEPs.
“As part of the UK, the contribution made by Scottish taxpayers to the EU budget over 2014-20 would be around £8.5 billion [€10.6bn],” said Brown, who was speaking at a public meeting in the European Parliament on Thursday (26 June).
“But it is estimated that an independent Scottish state would contribute a total of around £11 billion to the EU budget over the same seven-year period."
He added that reduced subsidies for Scottish farmers under the EU’s common agricultural policy and lower structural funds would amount to another £1 billion.
The figures amount to a total shortfall to £500 million per year.
A spokesman for Scottish first minister Alex Salmond told the BBC also on Thursday that an independent Scotland would “make sure we get a far better deal – a better deal which Gordon Brown comprehensively failed to achieve for Scotland when he had the power to do so.”