Claims financial planning in crisis
Thursday, September 19th 2002, 7:08AM
Money Managers boss Doug Somers-Edgar reckons that "the financial advice industry in New Zealand is in dire straights."
He made the comment on his hour-long show on Radio Pacific last weekend.
Somers-Edgar told his audience that financial planners are doing "it really tough" in the current environment where returns (mainly in the international shares area) have been negative for nearly three years.
He went on to say that a leading financial planner in New Zealand reckons that in the next couple of years a number of financial planners will leave the industry.
Of more concern to the financial planning community are the comments that some financial planners will be exposed for stealing from clients because of the financial difficulty.
Somers-Edgar made the comments in response to a question about an adviser wanting a client to switch money out of a fund which had been making losses.
He says one of the signs of trouble is financial planners encouraging clients to move their money around and charge a fee for making the switches.
Financial Planners and Insurance Advisers Association chief executive Phillip Matthews says Somers-Edgar's claims are absurd.
What do you think? Have your say on the state of the financial planning profession here| « Losing 'peace dividend' expensive | Sovereign takes regulation bull by the horns » |
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