It has been fascinating to see the response
from advisers and the public to Bridgecorp's demise. We have
some of the comments here,
and will post more later.
One which struck me was the point that if people knew Bridgecorp
was in trouble, why wasn't the public made aware of this?
Well, the answer is a little complex in that it's not a wise
idea to publish speculation, rather items need to be based
on fact.
A counter argument is that there was plenty of information
out there. People had to look for it, and not just look at
a highly flawed ranking system which at one stage gave Bridgecorp
an AAA. Indeed it has been scarey to see people have made
investment decision based on this system. Again there is comment
on this in our readers' response section.
Taking the bigger picture view of finance companies there
is clearly a lot of comment
about what the failure will mean for the sector. If last year,
and the Provincial collapse, is anything to go by then there
will be a slowdown of funds flow and when investors return
again there will be a flight to quality.
Sticking with finance companies and deposit taking institutions
there is a round up of other news at depositrates.co.nz.
Also RaboPlus has responded to the Blog Pricing
risk or buying market share
Across on the home loan front there has been some good news with banks easing some fixed rates. However, as we point out in our review of the market, this is just temporary relief rather than the start of the great easing cycle.
Next week ASSET Magazine will hit the desks of advisers. This issue has an in-depth interview with the Minister of Commerce, Lianne Dalziel, about changes to the advisory industry. It is a must read piece and a great follow up to the news stories we have already run.
It seems
to be a busy time with new appointments. In the People
section we have a major new appointment at Liontamer,
a new chairman for Goldridge and a "retention" manager
at AIA.
Also we have plenty more coming up over the next week. So
if you want to find out what is happening in this industry
of ours check out the People
section.
KiwiSaver
continues to be in the news, understandably as this is its
first week running. I applaud comments
by Investment Savings and Insurance Association ceo Vance
Arkinstall about some of the media commentary on the scheme.
Some of the stuff I have seen, such as a piece on Close
Up trying to link KiwiSaver to Bridgecorp is poor journalism
and does nothing to inform the public. This is just one example,
but there are plenty more of them.
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