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Susan Edmunds
Susan Edmunds
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Investor confidence drops

Wednesday 18th of May 2016

The FMA has released its latest investor confidence survey, which shows while overall confidence in New Zealand's markets fell slightly over the past year, to 56%, there is a large discrepancy between sophisticated investors and those whose KiwiSaver accounts are their first foray into the market.

Confidence fell most among middle income earners, with 59% of respondents earning  $50,000 to $100,000 saying they were confident, down from 66% last year. Despite the market volatility over the past year, the percentage of respondents saying they were confident has increased among those earning $100,000 to $150,000 from 71%-75% over the last year.

Investors with managed funds and unit trust investments were the most positive.

Rob Everett, FMA chief executive, said: “The downturn in market confidence is not surprising given the significant turbulence in financial markets, internationally and at home, over the last 12 months. This measure does seem to be impacted by sentiment in the markets, so we have introduced a new question to find out whether people are confident about the effective regulation of the markets.

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FMA outlines its latest expectations for advisers
Paul Flood: The danger is that the 'goalposts' (regarding what is acceptable or unacceptable adviser conduct) may be susceptible to change. Our 'Principles based' legal/regulatory environment lends itself to “prevalence-induced concept change” over time, perhaps not so much in the written laws and Code, as in the interpretation of the prescribed principles.
2 days ago Steve Wright
FMA outlines its latest expectations for advisers
Just a tip, if you use more than six, six letter words in a sentence you lose most Kiwi's. So avoid client/adviser confusion when writing your post or article if you would like it read and understood. Ironically, my last sentence was not likely read.
3 days ago Backstage
FMA outlines its latest expectations for advisers
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.
5 days ago Jon-Paul Hale
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5 days ago Jon-Paul Hale
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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".
5 days ago Paul Flood