[Weekly wrap] Morrison a big loss

Morrison, who had been battling leukaemia since 2009, had an influence in financial services with HRL Morrison and Co's investment in Fisher Funds.  He was a passionate supporter of a number of causes, advocating for more clean-tech investment and a change in the New Zealand flag.  He had also been touted as a potential Prime Minister.

It's not deadly like cancer, but risk illiteracy can ruin people's lives, according to a New Zealander researching the collapse of Queensland financial advisory firm Storm Financial.  Aaron Bruhn of Australian National University said most investors don't understand risk, and are loss-averse.

Advisers need to emphasise loss over gain in many cases, and explain risks in clear terms that investors can understand, he said.

If advisers don't get it right they could find themselves dealing with one of the four financial services dispute resolution schemes in New Zealand.  The Ministry of Economic Development has suggested folding them into one, a proposal that has come in for heavy criticism.