[Weekly Wrap] Bad-news story nearing end
Many advisers will be relieved when David Ross is finally out of the news once and for all.
Friday, August 30th 2013, 12:59PM
by Susan Edmunds
The former AFA pleaded guilty this week and has been remanded in custody.
Many advisers have said to me that it's unfortunate that every time a story is written about him, he's described as a "financial adviser" not an "accountant" or any of the other terms that might be applicable - and the industry that is fighting hard to build confidence is tarred with that same brush.
It is clear that most advisers are taking their obligations to their clients very seriously. When I spoke to Trevor Slater, of FSCL, he said that advisers regularly called for help in dealing with customer concerns, but those concerns very rarely escalated into full-blown complaints. He credited the fact that adviser relations are very relationship-based with their ability to turn sticky situations around.
The FMA's Sue Brown told the securities law conference in Wellington that advisers were still unsure about the "principles-based" approach to regulation, though. They worried about whether they were doing what they were meant to if there was not a checklist to tick off. The clear message to advisers was that the FMA would be a lot more lenient on those who looked like they had made an effort to comply, even if they had got it wrong.
Also at the conference, Michael Dowling, a member of the IFA board, said advisers needed to be very clear with their clients about the value they offer - and not be afraid to seek fees for it. He said a good rule of thumb was for advisers to be able to prove that for any fee that clients were charged, they received something that was worth twice as much.
Earlier in the week, we had more details about the FADC's first action and an adviser perspective on the proposals for flexible pensions.
On the mortgages front, Kiwibank has set its sites on improving its share of the home loan market and a new wave or rate hikes has started.
In insurance, nib has convinced rugby convert Benji Marshall to use his well-exercised pen to sign up for a marketing campaign, and the Quote Monster business has sold.
| « Advisers heading off formal complaints | IFA working on pro-bono offering » |
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