by Susan Edmunds
That’s according to the Commission for Financial Capability, which is this week running the annual Money Week, which includes a focus on the importance of having a financial plan.
Group manager of investor education David Boyle said he was asked about advice by members of the public at least weekly.
He said while there was work to do on public education, the industry needed to step up and adapt, as well.
“The industry has got to evolve and change and provide advice in a way so people get what they want when they want it. Not just trying to fit square pegs into a square hole. Everyone knows non-bank advice is not growing and there needs to be other choices.”
He said while there were often conversations within the industry about how to get clients paying for advice, it was of no value unless it was appropriate and consumers had the confidence in it, he said.
It was a timely conversation to happen while the Financial Advisers Act review was under way and providing a solid foundation to build on, he said. There was probably a role for the CFFC but the industry as a whole needed to think about how it could tackle the question.
It has been made clear that it is something Financial Advice NZ will aim to tackle but Boyle said they would have to overcome consumer skepticism about an organisation promoting its own members. “Anyone who’s representing a particular industry body, product or service can’t help but be seen to be a bit biased.”
He said when advisers could show New Zealanders they could provide advice they wanted in a way that would be effective that would be the start of more growth in the industry. If people had confidence they could get advice in a number of different ways that would be a win for everyone, he said.
“I honestly see the cup half full when it comes to getting more advice out to New Zealanders.”
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Which is exactly the problem faced by the revolving door policies that regulators have with the vested interests of the product community.
Regulation has been a disaster for the public and those who are non QFE aligned.
It sounds as though more regulation is intended that could be the death knell to unbiased advice.