About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, November 19th, 6:12PM
rss
Latest Headlines

[The Wrap] Partners Life drops a bombshell

I was going to say it's been a quiet week in the world of financial advice in New Zealand, then Partners Life drops this bombshell.

Friday, October 19th 2018, 4:45PM 1 Comment

by Philip Macalister

I never saw this coming. Partners Life has written to advisers and said this year's offshore conference will be its last. Partners has, arguably been the biggest player in the offshore trips market, spending, we reckon millions of dollars on taking advisers away.

There is clearly value for the company, and dare I suggest, advisers in these trips. For the companies it helps generate loyalty and sales. If it didn't they wouldn't do them.

Partners' decision has been driven by a number of factors including the bad press life companies get around their offshore trips.

Managing director Naomi Ballantyne says, in an email to advisers: "We have also heard repeatedly, and increasingly more assertively, from our regulators that soft dollar incentives such as offshore conferences for advisers are causing reputational damage to the New Zealand financial services industry.

"While they understand there is value created for both the adviser and the insurer from these conferences, they are not convinced that consumers benefit sufficiently to offset the potential for incentive driven conflicts to negatively influence the advice consumers receive."

On the commission front it was interesting to read this piece: Consumers don't care how advisers are paid.

Here come the robots

One of the themes this week has been around roboadvice with both Nikko AM and Kiwi Wealth on the cusp of rolling out the first versions of their robo KiwiSaver offering.

It's going to be very interesting to see the approaches each manager takes here. My guess is they will have different approaches.

The Nikko offering will be highly interesting as this is its first push into the retail market. 

And there is a third offering coming too....see Good Returns on Tuesday.

Markets continue to spook many people at the moment. For a good summation of where things are at and how investors and advisers should be thinking about things I highly recommend you watch this GRTV interview with Milford Asset Management executive director Brian Gaynor.

Besides giving his take on markets, we also ask him about how an active manager like Milford uses passive investment options. It's interesting as it helps put to bed this silly binary active v passive debate which has been raging for ages. 

Talking of GRTV we have two very special shows for you. They are from the Financial Advice NZ conference in Rotorua. When you have a bit of time pull up a chair and have a watch. You will hear from keynote speakers like the impressive Don Connerlly and Michael Harrison. Plus we have two of the Excellence in Advice award winners and plenty of other interesting interviews.

Watch the first video here

New Zealand's mini Royal Commission inquiry looks to be coming to a conclusion. The FMA and RBNZ are soon to release their review of banks. They are fortunate that the Royal Commission in Australia opened the door for them to get inside banks and other financial organisations on this side of the Tasman.

Of most interest in the FMA setting the scene this week and saying that it won't be naming and shaming any of the New Zealand banks. The fact that it has made this comment at this point indicates that the regulator is trying to front foot any criticisms that is being soft on the big end of town.

Have a great long weekend.

Tags: FMA

« FMA lodges robo application number threeSupport for pension move »

Special Offers

Comments from our readers

On 22 October 2018 at 11:52 am AndyB said:
Partners Life cancelling offshore conferences. I wonder how many advisers disclosed to their clients the holid... oh conference.... when recommending Partners Life.

I don't doubt there was some merit in the conferences themselves... but akin to the regulators thinking, this is clearly an incentive and should be disclosed to clients.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • When is a client really a client?
    “And this subtle upgrade to the understanding of a complaint. Which changes the ISO definition from an expression of dissatisfaction...”
    1 day ago by JPHale
  • When is a client really a client?
    “Just released additional standards from the FMA. Record keeping potentially until 7 years after the death of the life...”
    1 day ago by JPHale
  • When is a client really a client?
    “@ReganT interesting that the two life advisers involved with the code working group discussion are the ones being argued...”
    2 days ago by JPHale
  • When is a client really a client?
    “In a previous reply I responded to the concept of payment as a trigger. I actually agree it’s not. While we don’t often...”
    2 days ago by regant
  • When is a client really a client?
    “Tash are you being deliberately obtuse? I didnt say you have to keep sending/giving disclosure every year, I said you have...”
    2 days ago by regant
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 3.95 4.49
ANZ Special - 3.55 3.45 3.99
ASB Bank 5.20 4.05 3.95 4.39
ASB Bank Special - 3.55 3.45 3.89
BNZ - Classic - 3.55 3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.35 3.35 3.35
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 ▼4.14 ▲4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - ▼3.39 ▲3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.55 3.39 3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.55 3.45 3.99
Median 5.34 4.04 4.09 4.39

Last updated: 15 November 2019 4:16pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com