Agency Theory and Financial Planning Practice
type="main" xml:lang="en"> <title type="main">Abstract</title> <p>We extend an influential contribution to the literature on agency theory and then use this extension, along with other theoretical contributions, to shed light on agency problems affecting funds management and financial planning in Australia. The case for pure fee-for-service in actively managed funds and plans turns out to be weak. The amount of money exposed to risk by an active manager should be less than the entire investible wealth of the client, especially in the case of investors on the cusp of retirement. Asset-based fees on actively managed funds should include a fulcrum component. </section>
Year of publication: |
2014
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Authors: | Kingston, Geoffrey ; Weng, Haijie |
Published in: |
Australian Economic Review. - Melbourne Institute of Applied Economic and Social Research (MIAESR). - Vol. 47.2014, 3, p. 290-303
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Publisher: |
Melbourne Institute of Applied Economic and Social Research (MIAESR) |
Saved in:
Online Resource
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