Sparks fly between advisers
This week I have been fascinated by the goings on in the advisory industry, and some of the things that make it look silly.
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While some in our story are saying bah humbug, I reckon it is a sensible outcome. The advisory industry in New Zealand isn't big enough to have multiple bodies. Plus it is one way to end unseemly infighting.
What is amazing though, is that there has been years of discussion and consultation on adviser regulation, yet this change happens at the Select Committee stage of the Parliamentary process. Arguably one of the last possible stages for changes to be made.
The other major change by the committee is a tightening of the definition of advisers. My views on this should be well-known by now. People like the Blue Chip salesmen should be included. Likewise, creating two tiers of advisers, the full-on one and the incidental adviser is plain daft. Murray Weatherston makes some useful comments on this in our story today.
The other big bit of news this week - and slightly related to this subject - is that the Government and the Institute of Chartered Accountants reached agreement whereby ICANZ members will provide Blue Chip investors with some free advice. This is good news, even if a little slow in happening. Also it is a feather in the cap for ICANZ in working together with the government and achieving this result. I note the IFA tried to piggyback on this the following day. To its credit it congratulated ICANZ, however, it's offer isn't the same.
The story has an amusing angle to it. Yesterday, in his weekly newsletter Chris Lee went ballistic and got stuck into financial advisers big time, naming many in a less than flattering light. Trouble is Chris's facts are terribly wrong. The Minister of Commerce Lianne Dalziel did not do a deal with IFA. She did a deal with ICANZ. Her deal gives credibility to ICANZ. The IFA deal is not government-sanctioned, thus it doesn't have the same, let's say mana, as the ICANZ one.
To make the story even better, Hawkes Bay adviser Michael Shaw (who is named in the Lee email) has sent out a "strong response" getting stuck into Lee.
To see what they are saying read today's Blog.
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Sparks fly between advisers |
Another story that I felt was pretty big this week was Geneva Finance's plan for the future. Sure some have bagged it (including Lee). However, I take a different view. While it may not be perfect for Geneva investors, at least there is a clear plan ahead, what will happen to their money and when they get it back is shown and full-credit to the company for coming up with a plan to get through this difficult period.
In other Deposit Rates news, Allan Hawkins' listed company Cynotech has bought some of the loan books of Western Bay Finance and Capital + Merchant. Also we understand later today there will be good news for one finance company.
Another, related story, is our report on LM Investment Management. Earlier in the week a story, quite critical of LM's mortgage fund was run elsewhere. It seems the story was a bit of a beat-up and the company wasn't consulted. LM provides its view on things here.
The mortgage market continues to be buffeted by lots of change. Our Weekly Home Loan update records further interest rate rises and Sentinel has become the latest lender forced to reorganise its business as conditions in the housing and mortgage markets deteriorate.
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