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Susan Edmunds
Susan Edmunds
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Returns being overestimated: Sheather

Thursday 4th of December 2014

Brent Sheather, of Private Asset Management, said too many New Zealand financial advisers were relying on historic returns when discussing how portfolios might be expected to fare in future.

That could have a negative effect on clients as they tried to work out how much they would need to save for their retirements, he said.

“If you overestimate returns, they won’t save enough and they will have the wrong idea about how much they can draw down.”

It was misleading to suggest that returns would be as high in future as they were in the past, he said.

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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.
20 hours 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.
22 hours ago Backstage
FMA outlines its latest expectations for advisers
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2 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".
3 days ago Paul Flood