Crossan there to help the financial services sector

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Trust in the financial service sector has taken a "battering" according Retirement Commissioner Diana Crossan, and industry is much more willing to work with agencies such as her own to help rebuild public confidence in financial advisers.

Thursday, December 10th 2009, 6:49AM 6 Comments

by Paul McBeth

Speaking at Parliament's Social Services Committee, Crossan said the industry has been forced to take a look at itself and take on board advice from agencies like the Retirement Commission to do so.

"They've seen what's happened and asked how we can help develop a tougher financial services sector," Crossan said.

Public confidence in financial advisers took a big dent last month after a Consumer mystery shopper survey found only three of 17 financial plans prepared for the "shoppers" were up to scratch. The rest were either disappointing or rejected.

The fall-out of the survey saw two members pushed from the Code Committee appointed to draft the code of ethics for advisers after their organisations failed the survey.

One area where industry had improved was the transparency of how managers communicate with clients. Crossan helps judge the Workplace Savings NZ communication awards, and was highly critical of the submissions at last year's awards.

"I made it very clear many of the organisations actually gave really pathetic information forward for the award," she told Parliamentarians. "This year what we've seen things get better."

Crossan has advocated simplifying information for consumers, and a shake-up of the 31-year old Securities Act will focus on improving the adequacy and relevance of investor information when Commerce Minister Simon Power releases a discussion document on the legislation.

Paul is a staff writer for Good Returns based in Wellington.

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