A blunt instrument in the wrong hands: PAA
The MJW Report got one thing right – quality advice is essential to the financial well-being of New Zealanders. In fact, there were a few recommendations that we agreed with – in part or in full. However, on the central assessment and recommendations, we cannot disagree more.
Before getting into our views on the report, it is important to note that a number of now ex-members of the FSC have publicly stated that the findings are unbalanced. The Report’s deviation from the initial scope has been questioned, and the focus on the advice channel has been challenged. Valid criticism as this is very much the case.
The FAA Review deserves adviser attention; not the MJW Report
In the style of the Trowbridge report in Australia, the MJW Report has focused on adviser remuneration as the key lever to address issues such as replacement business and conflict of interest. A blunt instrument in the wrong hands.
The Report is unbalanced in its assessment of two key themes – replacement business and conflict of interest. It did not address or fully qualify these issues in equal measure across all channels in the industry, but rather focused on the advice channel. This resulted in an unbalanced assessment and associated set of recommendations, and a central recommendation that is not in the best interest of consumers.
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