The financialalert Person of the Year 2012 has shown outstanding energy, commitment and professionalism as the first full year of the regulatory regime for the New Zealand financial advisory industry bedded in.
IFA and PortfolioConstruction Forum partner on professional development programs; Veteran financial adviser retires after 30 years; Regulator to undertake surveillance of research report providers
The traditional approach to the six-step financial advice process teaches advisers to be consultative - but moving to a more collaborative approach would help guard against being replaced by technology, online product sales and banks' standard offers.
Demographics, workforce and trends are changing fast - and creating opportunities for financial advisers who move with the times.
FMA investigating advisers with clients invested in Ross Asset Management; Disputes resolution scheme blew whistle on Ross Asset Management; Few investors favour "all you can eat" advice model.
Cloud technology could be the key to providing end-to-end, seamless financial advice. Much has been said about cloud technology, but very little has been explained its potential positive impact on financial advice.
What if the powers-that-be decide to change the rules such that every NZ adviser had to become an AFA not in three to five years as expected, but by December 2013? Would darkness descend on the industry? Or would it be a new dawn?
Financial planner, financial adviser to be enshrined in law; Strategi Institute awarded highest NZQA rating...
All advisers know they should pay special attention to their top clients - the challenge is how. I suggest investing 20 minutes to create a four-age Client Opportunity Plan
Earlier this month, Tony Vidler called for SOAs to be no longer than four pages. But others see no problem with quite lengthy statements, as financialalert found out when it surveyed some advisers on how they interpret Code Standard 6's requirement to communicate "clearly, concisely, and effectively."
Top 10 concerns amongst advisers; AIS appoints new investment manager; Adviser summer school; William Blair enters Australia and NZ; Court ruling against S&P opens door for CDO lawsuits.
We are all susceptible to priming - exposure to a stimulus influences our response to a later stimulus. This has significant implications for investors in today's information age. But there is a defence against this behavioural bias.
The FMA has indicated it could bring the first disciplinary proceedings against advisers before year's end, likely around Code Standard 8 regarding suitability of advice. financialalert asked some AFAs, a lawyer, a researcher and a Disciplinary Committee member what the test for suitability should be and whether it should be applied at a product or portfolio level.
I suspect that one reason financial plans often don't turn out as expected is that the budgeting/cash flow planning doesn't do enough to plan for irregular expenses.
The Institute of Financial Advisers has appointed its new chief executive, following the departure of Peter Lee back in July 2012...
While the ideal length for a Statement of Advice is one page, a maximum of four should be sufficient for most advice, to most consumers, most of the time.
Despite financial advisory firms growing more efficient through technology, research in psychology and anthropology suggests that there may still be a limit to the number of clients we can take on...
TNPPA and LBA to merge into new association; Bankers Association accuses FMA of going beyond its powers with KiwiSaver guidance; NZICA signs MOU with FMA including financial adviser regulation; No complaints about financial advisers to ISO; AdviceFirst acquires STEP Financial Services' business; Australia's commission ban 'grandfathered'.
On the Reader's Digest NZ Most Trusted Professions 2012 survey, financial advisers ranked 31 out of 40. To improve trust, we need to deliver the advice services clients value most - and a recent survey provides valuable insights into what that is...
Last month's Finology Conference introduced a new term for a subject financial advisers deal with every day. We spoke with delegates to get their key takeouts - for example, the importance of making financial planning fun.
If we step back and consider risk in the context that risk management experts do, we can test the key issue - a client's capacity for absorbing different risk events.
We need to understand and assess four aspects of risk to truly understand a client's risk profile and create a portfolio that allows him/her to sleep well at night.
Your usually rock-solid client calls demanding that you go to cash. Was your risk assessment wrong? Not necessarily. His willingness to accept a loss is pretty much the same, but his perception of risk has changed. Here's how to manage the difference...
This month marks the end of the first year of the FMA's audits of advisers. Far from relaxing its vigilence, it plans to increase contact with advisers, increasing monitoring visits and introducing a new "verification visit" regime...
While consumers conduct more and more of their own research on their financial options, advisers are actually better placed to gain credibility and trust - largely through cloud computing - according to Brian Greer, national sales manager with Allied Kiwi, and a speaker at next week's Finology Conference in Auckland...
"Save a healthy portion of your income every year from the start of your working years to the end" is a standard of retirement planning advice. But the better path to retirement success may not be to save a flat percentage of income every year at all...
The low uptake of financial advice by consumers directly reflects the negative perceptions of the public towards the financial advisory industry, according to Brian Boggs, co-founder of online education provider, Leading Minds Academy. But advisers can better articulate their value and engage clients...
FMA launches new website to help investors plan, choose and track investments; TNP signs strategic alliance; Mentor/Adviserlink merges with Strategi Institute; More former finance company directors sentenced; Australia has $1tn retirement savings gap...
The financial advisory industry still has a long way to go before the public sees it as a well regulated profession that can be trusted, according to according to financial adviser, Martin Hawes, who will be presenting on the issues of building trust and working with retirees at next month's Finology Conference in Auckland...
Lonsec named Research House of the Year; FSC Australia imposes insurance commission claw-back regime; ETITO rebrands; S&P upgrades Asset Finance outlook; new Code Committee chair...
The "Wizard of Oz Effect" where the adviser has to go away and do something behind closed doors not only breeds distrust with clients, but also boredom. Instead, the advice process needs to become visual and interactive, according to Dr David Lazenby, Ph.D, a keynote presenter at next month's Finology Conference in Auckland...
Advisers aren't getting any younger and with the average age now around 60 attracting new talent into the industry is a must if advisers are to create a healthy demand for their businesses at sale time. financialalert looked at the demand for new entrants amongst financial planning firms, and their expectations...
Some firms that shifted to annual retainers are now shifting away from retainers and back to AUM pricing after a few years of business pain!
Clients are becoming more aware of their rights to take a grievance against their adviser while at the same time, regulation has instilled formal disputes processes. financialalert looked into factors influencing PI cover rates, what is actually covered, and what can advisers do themselves to mitigate the risk of a claim...
IFA starts hunt for new Chief Executive; Kiwibank KiwiSaver replaced by Gareth Morgan scheme; Diana Crossan to step down...
Most of the reasons why clients come to your door involve stressful changes in their money situations and their lives. Here are some tools that can help you do a better job of helping people successfully navigate significant shifts in their financial lives...
IFA honours Graham Rich with Outstanding Contribution award; FMA finds issues with advisers' record keeping; Australian regulator proposes adviser exam;
The Financial Markets Authority has been busy. In the last month, it has announced the Trans-Tasman mutual recognition of financial advisers as well as releasing a guidance note on giving KiwiSaver advice. financialalert spoke with advisers, researchers and industry associations about what the changes mean to advisers...
This heading is THE question being asked within the depths of the Financial Markets Authority's guidance note on the Sale and Distribution of KiwiSaver. And, it does appear that RFAs may be able to advise those going into KiwiSaver after all...
From 6 July, New Zealand financial advisers will be able to provide services to clients based in Australia, without holding an Australian Financial Services License, under a mutual recognition arrangement just announced by the regulators in both countries. But the devil's in the detail, warns one industry leader...
FMA's KiwiSaver sales guidance note "a defining piece of guidance". Advisers unable to gain new clients under proposed Financial Markets Conduct Bill. AdviceFirst appoints new chairman. FSC retirement savings report "overlooks a critical area".
In the past, trust was built via face-to-face meetings with clients or prospects. However, in today's busy world with low cost and easy access to technology, things have changed. Trust can now be built from afar...
More than a year after the proposed fees and levies for financial advisers were announced, advisers finally have clarity about how much they'll have to pay for being regulated. But the end outcome came as a surprise to industry leaders.
IFA CEO Lee steps down. New CEO for UDC Finance. No appetite for ANZAC dollar.
One of the most worrying aspects of the best practice advice process for many advisers is trying to determine what is “good” advice – and therefore (the worrying part), what might be considered less than good?
Britannia launches new compliant QROPS - open to all advisers. Call to ban publication of gross returns for KiwiSaver funds. Annual declaration time for AFAs. Where your clients income tax ends up...
In early May 2012, 120 portfolio construction practitioners - 90% of them AFAs - gathered in Auckland for the two-day PortfolioConstruction Forum Symposium featured leading local and international investment professionals presenting on contemporary and emerging portfolio construction issues. financialalert asked delegates to send in their key takeouts from the two-day program...
Lonsec puts Fisher Funds' international fund on watch. Lifetime Group acquires Meridian Brokers. NZ Funds joins lawsuit against Morgan Stanley, S&P and Moody's. Tyndall replaced international fixed interest manager. Kiwis awake to retirement savings reality - Mercer. NZ foreign trust schemes catch ATO's eye...
Have your 2012 revenue resolutions gone by the wayside? If so, the year is far from over - consider picking one of three simple strategies identified in a recent research study which differentiated financial planning firms that outperform...
Nearly a quarter of your clients do invest for the thrill of it, according to FinaMetrica’s sample of more than 500,000 investors. What that means for advisers?
Statements of advice are one of the more onerous requirements for financial advisers under the new regulatory regime. Code Standards 9 and 12 now mandate advisers must provide written information to clients regarding personalised services. With very little guidance from the regulator on how to go about this, financialalert asked some advisers what they're doing to comply and how they're going about writing financial plans...
FMA to publish adviser compliance results, notes it is watching fees vs commission issues; Investors will pay $770 for comprehensive financial advice; Financial Planning Standards Board seeks board nominations; Weldon's top 10 for the next 10 years for growing NZ's economy; Macquarie to recruit 30+ financial advisers...
Nobody should care how an adviser gets paid, other than the customer. This is not another piece on which type of remuneration is best - it is about the most significant regulatory debate happening in the developed world today and why AFAs have nothing to fear from it...
Court rejects AFA authorisation appeal. Only 3% of plans "good quality" in shadow shop. Fund manager of the year finalists announced.
Regulation has forever changed the way advisers and their businesses operate - but has it changed the marketplace for advice? In the first of this two-part feature, financialalert spoke with several practices about how they've adapted to the new reality, what effects regulation has had on their bottom line, and where clients are coming from these days...
Recent research suggests financial planning firms with revenue-based incentives for their staff nearly tripled their revenue growth compared to firms with merit-based bonuses. Your staff may impact the planning firm's revenue far more than you realise - here are six ways they absolutely impact the revenue of your firm...
If you're not excited about the work you do, you can't expect your team and your clients to be. Here are three different approaches that can help you restore your energy and excitement level...
HMRC knocks 41 New Zealand QROPS off its list. Planning practices worth 2-3 times recurring revenue. Call to ditch KiwiSaver defaults. NZ and Australian corporate defaults fall. Advisers using social media. FMA does better second time around on disclosure guidance.
Advisers could grow their client bases much more quickly if they could eliminate the bad habit of asking their clients for referrals...
In this second feature in our series, financialalert spoke with a major fixed income provider, an Authorised Financial Adviser assessor, various AFAs and our own publisher about how advisers should consider the use of debt in portfolios...
SFO launches further investigation into NZF Finance; Home loan affordability near its best in 7 years; NZACU partners with Fisher Funds; Quick check formula for retirement savings; and Kiwis' net wealth increasing...
While attending the American Economic Association meeting in early January, I had three conversations with leading academics concerning experiments to help people stick to their plans, including one that tripled savings rates...
FSC launched, three clear aims; Australian regulator to ramp up wrap regs; FMA consults on disclosure in offer docs; Research underway cost of 'comfortable' retirement; NZ major banks' outlook 'benign'; Rating released on NZ Association of Credit Unions...
Now seems to be one of those times when investors and financial advisers have learned the wrong lessons from recent history, and may be putting themselves in more, not less, danger going forward...
Fees and levies on advisers under the new regulatory environment were due to be established in May 2010. But nearly two years on, advisers still don't know how much they'll be paying. We asked the Ministry of Economic Development for an update...
Communicating with clients in an effective and economical way can be tricky - especially when the news might not be crash hot. financialalert spoke with communications experts working with advisers on both sides of the Tasman about the frequency, content and types of contact advisers should be having, and the growing use of social media...
Analysis of Lombard v Nathans; Lonsec to launch quant analytics tool; Partners Life appoints Knowles; AIA grows market share; Home affordability continues to improve...
Helping clients understand portfolio risk is one of the most difficult challenges faced by advisers. Following on from my previous blog in which I looked at how often a portfolio might be falling, recovering and rising, now we turn to showing investors how often and over what periods falls might occur, how deep they might be, and how long the portfolio might take to recover...
TNP launches new professional association; guidance note for adviser remuneration disclosure; check business interruption cover; Asia-Pacific ahead in ESG ratings; site offers director of parliament and government agencies; Auckland Council ratings upgraded...
After the 2008 meltdown, is Roger Gibson - one of the most consistent apostles of modern portfolio theory - still touting the value of holding diverse asset classes?
Another mystery shop of financial advisers is rumoured to be on the way. financialalert spoke with Consumer about a possible mystery shop this year, as well as advisers about the different approaches to dealing with a potential mystery shopper...
Tate explains why IFA broke from FAANZ; S&P exits fund research; NZ will top developed world growth over next four decades; New risk tolerance tool; Health insurance numbers stablising...
For most financial advisers, the next challenge in complying with regulation is continuing professional development (CPD). The good news is there are a range of organisations ready and able to assist. financialalert spoke with the Financial Markets Authority (FMA) and some leading education providers about advisers' responsibilities and how they can fulfill the requirements...
van Eyk awards A ratings to funds and ETFs; KiwiSaver FUM up 7.5% for quarter - the big get bigger; ANZ reviews Bonus Bonds portfolios; business confidence uptick; house affordability improves as median house price slips; adviser joins Plus4...
Last autumn, a veteran adviser I know contacted his retired clients with the suggestion that they meet to discuss one simple goal. Not only did this exercise benefit those clients, he tripled his referrals in the process...
Kiwi AFAs who work in the UK pension transfer space may start receiving a lot of phone calls if a new law is passed in the UK which aims to ensure any QROPs scheme not obeying the rules loses its QROPS status - leaving investors in those schemes subject to a retrospective 55% tax claw-back. But, the real hook is that the legislation is retrospective back to 2006 when QROPS first began...
Kiwibank rating affirmed, Lombard trial enters final phase, SFO charges finance company directors, HFANZ proposes health insurance funding changes, Milford still top of KiwiSaver tables, Bollard to step down, FMA issues draft guide for offer docs, OCR stays at 2.5%, inflation down to 2%, FMA issues anti money laundering guide for advisers, GE Money settles claim, Sovereign A rating unchanged...
With 2011 so frantic for most financial advisers, 2012 looks set to be an 'interesting' year. As the new regulatory environment has pretty much settled in, advisers are keen to get back to business, and back to basics. We asked industry leaders what 2012 will bring...
The financial advisory profession may be in the process of creating opportunities and challenges similar to the huge transformation of the early 1990s. Internet-based information consolidators and financial organisers, hooked into planning calculators, will commoditise the adviser's traditional value proposition - how should advisers respond to be successful in the future?