Advisers needed regulation: Everett

Rob Everett spoke at a Trans-Tasman Business Circle event in Auckland this week, where he acknowledged increasing regulation was a top concern for many in the financial services sector. But he said the regulatory load in New Zealand was justifiable and manageable.

Everett said almost all of it was a result of the global financial crisis and the collapse of finance companies in this country.

“The fincos revealed other – less obvious – shortcomings in New Zealand financial services. These shortcomings highlight, in turn, areas that need regulatory attention. One area was financial advice. Many of the people who bought debentures in the fincos shouldn’t have done so.”

He said the finance companies were too high-risk for the investment profile of the investors and the risk premium they were offered.