KiwiSaver members want online research, not advice; New player says

I wonder when the FMA will realize a number of Advisers have been pocketing the 0.25% p.a trial for the last 12 years and have been providing zero interaction. My Adviser has been pocketing the trail for over 6 years now and not a peep or squeak has been heard from them. Not saying I would or wouldn’t take their Advice.

Interesting results, given that my own anecdotal experience is clients don't have a clue about anything to do with KiwiSaver most of the time.

The one's that move with me would not have addressed their default positions if they had not had someone take them through it directly. They would have never decided to seek advice on the basis they don't know what they don't know.

To be fair I've only transferred those that have made a reasonable choice on the structure needed and they have wanted to use the provider I work with. The right structure over the provider being the guiding reason for change and the person in front of them is going to help.

Which has been the FMA stance, a member in the right structure is better over a member in the best fund manager. They’ll do better than the default unconscious position they started in.

And for the purists yes, they could be improved from there. Though a client with a few thousand in the account is less likely to seek and pay for advice than one with a few tens of thousands in their accounts.

What has been interesting is once the funds get to a certain value I do get requests for planning, which I do refer on to AFAs. Which I would suggest is the more likely evolution as fund values increase.

The research also suggests the reasons for the finance company issues are still alive and well, as unadvised clients were the primary victims of that debacle.

So the better answer is advisers empowered with research to assist clients with their choice as a better approach. And under the new rules, this is where it is going with the full advice requirements on advisers going forward.

Being a RFA I'm also limited in what I can do outside of explaining how Kiwisaver works and this is the provider I use, I cannot provide comparison, I cannot provide research, as that triggers personal advice with their current provider.

The majority that have had existing advice on structure stayed where they are, which is what should happen in a class advice situation with undereducated client's.

So the new rules are going to make this space more interesting, potentially more difficult to access an adviser directly in the early stages until RFA’s sort out what they can, and can't do, with licensing.

@mike and his email, maybe you need to consider that the adviser concerned hasn't been paid as well as you think. Most Kiwisaver trails to the adviser barely cover a letter and a stamp, and the ongoing trail is somewhat covering the initial advice bill.

That's not to say your experience of no service is acceptable, it's not. There should be far more contact than you have experienced. Though too, the scope of service/terms of engagement you have in place may specifically state no ongoing service. I would be surprised if it did and I would be surprised if it was in place if this transaction was dated prior to 2011.

However, I'm going to resist sending you an email offering a review, as that would be a commercial offer under the spam act and illegal. You may want to change your handle to remove your email address here too...

But if you do want to discuss things, I’m happy to assist, you’ll find my details above under the insurance tab...