BOS puts advisers’ in hot seat over frozen funds
While also citing the unforeseen impact of the global financial crisis, advisers were singled out in two bullet points, with the BOS saying there was clear evidence that "some advisers mis-sold the products, representing them as less risky than they were" and "some advisers engaged in poor advisory practices."
BOS found some advisers signed less sophisticated investors up to the funds without sufficient explanation of the risks, while some recommended allocations in excess of the 20% considered appropriate for low to moderate risk investors.
"Unfortunately, the risks associated with the funds were much higher than many investors - and some advisers - understood," said the report.
Ombudsman Deborah Battell told Good Returns she was reluctant to apportion blame in any particular direction, though "one of the very obvious things was the fact that there was clear evidence of mis-selling."
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[Weekly Wrap] KiwiSaver in play; but outcome unclear](https://goodreturns.publit.io/file/c_fill,w_300,h_200/0ad582e4-c9a3-4692-bbe2-62d928f77fd2.jpg)
