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Jenny Ruth
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Hubbard investors will suffer considerable losses: Managers

Tuesday 8th of March 2011

HMF lost $1.1 million on its Pike Rive Coal stake after its mining disaster and a further $0.8 million on its stake in New Zealand Oil & Gas, Pike's major shareholder, the managers say in their sixth update for HMF investors.

Other losses included $3.5 million on Mercer Group, of which HMF currently owns about 17.8% after having invested a further $1 million since January 31, and just under $1 million on Olympus Pacific.

The statutory managers say the losses could have been greater: they sold 400,000 NZ Oil & Gas shares and 446,386 Pike shares shortly before the Pike disaster on November 19 last year.

They also sold shares in Olympus and collectively these sales saved investors from losing more than $675,000.

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All things said are great aspirational goals for a great financial advice industry, it mirrors what both the legislation and the code requires. However, like most things discussed it talks about what's expected not how it's done. The hardest aspect of financial advice today isn't what it is, it is how it is done. The how only comes from those that have done it, the how is only provided with examples. Guidance documents that spell out what's required along side how it it done. We’re still dealing with the same issues we started with in 2021, figuring out the how. And figuring out the how in every advice business is consuming resources that could easily be shortcut by the FMA demonstrating what they are expecting. It's not about “do it this way” its about this is the sorts of things we’re looking for. In the absence of standards and expectations, guesswork prevails. That represents significant risk to FAPs and the result is onerous overcooked advice processes for multiple advice operations and undercooked she’ll be right for single operators focused on getting the work done. Both approaches have potential for harm and as its been said earlier, leaves advisers open to explain they haven't been speeding with the authorities have pulled them over. The advice industry needs guidance on the how we know the what already.
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To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
2 days ago Paul Flood
FMA outlines its latest expectations for advisers
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2 days ago agressively passive