About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, August 4th, 6:48AM
rss
Latest Headlines

Planning industry needs lowlifes

Taking the bad guys out of the financial planning industry and shooting them isn't going to solve its credibility problem, economist Gareth Morgan says.

Sunday, July 22nd 2001, 11:20AM

by Philip Macalister

Controversial economist Gareth Morgan has told financial planners they need to keep the lowlifes in the industry as a point of differentiation.

Talking at the Financial Planners and Insurance Association conference in Christchurch last week he argued against adviser regulation saying it was no magic bullet to respectability.

Likewise taking and the bad guys and shooting them isn't going to give confidence to Mum and Dad investors, he says.

Morgan's argument is that taking the bad operators out of the market isn't going to make it suddenly respectable.

To be credible advisers need to set high standards and earn the respect of consumers.

"You cannot legislate excellence," he says. "Excellence has to be earnt."

"Your strongest asset is earning client satisfaction."

So on one hand advisers need to strive for excellence and be seen to be the best.

On the other side there needs to be bad advisers to allow the good ones to differentiate themselves.

"Bottom feeders are essential if you want to differentiate yourself," he says. "You need losers to make the winners shine."

Morgan says the worst thing that could happen for the industry was to have the Government implement a regulatory regime.

"The worst thing you could do is actually get the Government to play a role here and regulate - that would be a disaster."

His view is that the association, or some other body, should set the bar for standards at a high level and keep raising it over time.

Morgan says regulation makes the business sterile: "It turns you into a bunch of vanilla accountants."

He also questioned the value of education: "The biggest biggest handicap to me in the enterprise economy is my education."

"The more years I spent at university the further I got from reality."

"You can't become a good investor by doing a 9-week Jenny Craig course."

Morgan says formualising investment and making strong rules isn't the way to be a successful investor (or adviser).

POLL: Should lowlifes be kept in the advisory industry?
VOTE HERE

You can read Philip's blog here: http://www.goodreturns.co.nz/blog/

« NZ shares not such a dogSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Attitudes to advice cost must change
    “The challenge for the industry is to outline & justify what value they're adding, in exchange for payment. Unfortunately...”
    1 day ago by Pragmatic
  • Massey calls for Act overhaul
    “Completely agree with Tash, unfortunately common sense does not prevail and the last few years have been a complete waste...”
    2 days ago by Broker
  • Massey calls for Act overhaul
    “@tash if these "experts" understood or at least willing to listen to us, we will not be having this dialogue in the first...”
    3 days ago by w k
  • HSBC does it again
    “Apologies for the typo - the above should read "$1.020m for two years at 4.69%"...”
    3 days ago by Laurie
  • Obituary - Bob Edwards
    “I had the experience of working closely across the table from Bob as an AXA representative negotiating adviser terms with...”
    3 days ago by Ros Hogguer
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 6.24 5.10 5.59 5.59
ANZ Special - 4.89 4.99 -
ASB Bank 6.50 ▼5.05 ▼5.25 ▼5.35
ASB Bank Special - ▼4.69 ▼4.89 ▼4.99
BankDirect 6.50 ▼5.05 ▼5.25 ▼5.35
BankDirect Special - ▼4.69 ▼4.89 ▼4.99
BNZ - Mortgage One 6.65 - - -
BNZ - Rapid Repay 6.24 - - -
BNZ - Special - - 4.69 -
BNZ - Std, FlyBuys 6.24 5.19 5.39 5.29
BNZ - TotalMoney 5.99 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.75 5.75 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 6.45 - - -
HBS Bank 6.14 5.39 5.39 5.39
HBS Special - 4.99 4.99 4.99
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 6.45 5.10 5.40 -
Housing NZ Corp 6.49 5.19 5.49 5.59
Lender Flt 1yr 2yr 3yr
HSBC Premier 6.60 4.89 4.89 ▼4.99
HSBC Premier LVR > 80% - - - -
HSBC Special - ▼4.49 ▼4.49 ▼4.49
ICBC 6.75 5.99 6.39 -
Kiwibank 6.15 5.39 5.49 5.69
Kiwibank - Capped - - - -
Kiwibank - Offset 6.40 - - -
Kiwibank Special - 5.09 4.99 5.39
Liberty - - - -
Napier Building Society 6.50 5.80 6.70 -
Nelson Building Society 6.70 5.65 5.95 -
Lender Flt 1yr 2yr 3yr
NZ Home Loans 6.60 5.39 5.49 6.29
Perpetual Trust 7.70 - - -
Resimac 5.84 5.60 5.65 5.79
SBS Bank 6.14 5.39 5.39 5.39
SBS Bank Special - 4.99 4.99 4.99
Sovereign 6.35 ▼5.05 ▼5.25 ▼5.35
Sovereign Special - ▼4.69 ▼4.89 ▼4.99
The Co-operative Bank 6.20 4.89 4.99 5.20
TSB Bank ▼6.24 5.45 5.49 ▼5.40
TSB Special - - 4.99 5.40
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 6.15 5.39 5.39 5.59
Westpac - Capped rates - ▼6.15 ▼6.15 -
Westpac - Offset 6.15 - - -
Westpac Special - - ▼4.69 -
Median 6.45 5.19 5.39 5.39

Last updated: 31 July 2015 11:25am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com