Those financialalert spoke to nominated a variety of issues for our annual "the good, the bad and the ugly" roundup - and for what advisers should be doing over the break to prepare for 2014.
It is that time of the year where practitioners think in detail about the year ahead - most are hoping for that big "break through" year. You just need to focus on the right TASKS.
Come Christmas, there will no longer be any annuity product providers in New Zealand. Fidelity is pulling out, citing lack of demand. But a new player is hoping to set up in 2014.
The Santa myth can teach financial advisers a lot about the three levels of trust in the adviser-client relationship.
Across the ditch, Australia's Productivity Commission has recommended a jump in the entitlement age for superannuation to 70. We spoke to Kiwi academics and financial advisers about the likely future of NZ Super.
Most advisers routinely cross paths with attractive prospects in day-to-day life. The challenge is to raise the possibility of working together without becoming known as someone who is always pitching.
Why bother to get your CFP designation when AFA is the regulator's standard? Simple - 68% of CFP professionals generate higher revenues than those without certification.
For some clients, even achieving their goals is unsatisfying. Research suggests that financial planners could go a long way in helping clients to really derive more happiness from their money.
We have not achieved visibility in professional standards - we have achieved obscurity. That must change if we are to achieve public confidence as a profession.
Even our positive expectations of the much anticipated Third Plenary session of the Communist Party of China were exceeded.
So you've read FMA's DIMS guidance note and decided it is all too hard? Hopefully not - non-corporate AFAs shouldn't be overwhelmed - and retaining DIMS may be good for business.
The Code Committee is currently reviewing final submissions on proposed changes to the Code of Professional Conduct for Authorised Financial Advisers. Structured Continuing Professional Development is shaping up as the hot potato, with the way in which advisers are accredited CPD hours set to change significantly.
Recently, I spent time reflecting carefully on how regulatory reform has worked thus far in New Zealand, and where things might head next.
These three insights will help cut through all the noise about the US debt ceiling debacle so you can understand whether it's something worth worrying about.
It is five years after the Financial Advisers Act (2008) was passed and two years since regulation came into force. A new survey reveals that adviser regulation has yet to deliver on its purpose.
In this second of our two-part feature on ageing and how advisers need to adapt for this growing client base, we take a closer look at the personal and demographic effects.
With 80% of financial planning recommendations not leading to action, we need a fundamental reappraisal of how to create plans that translate into action.
By 2031, 32% of the population will be 55 or over. Last month's second annual Finology Conference showed advisers just how complicated the ageing process is and how to adapt their service for this growing client base.
There are many benefits to having a clearly articulated financial planning philosophy for your firm including helping ensure clients will be a good match.
The new wave of jargon around financial planning should be a concern to us all. There is a very real risk that we will begin to lose sight of the good we do.
Significant demographic change is happening. To prepare the retirement readiness, the financial services industry needs to provide better advice and products.
I'd bet these three ideas hold more valuable and implementable portfolio construction information than any short-term economic, political and market machinations.
Even the new LVR ratio restrictions introduced this week are successful, will it have other side effects that are good or bad? I am worried for three reasons.
A simple answer you might think. But, when we posed this question to the expert panel at the recent Finology Conference, it quickly became evident that they would struggle with who to recommend.
A myriad of firms, institutions and individuals took part in the recent Money Week 2013. We talked with some of those involved to see where Kiwis are at in terms of financial literacy, money management and seeking financial advice.
Financial planning's "third wave" may well be a four-factor service model that places much greater emphasis on helping clients maximise their human capital, not just their financial capital.
With the deadline passed for submissions on the proposed changes to the Code of Professional Conduct for AFAs, we asked the Code Committee Chair and some of those who made submissions, what their view is of the proposed changes.
Rather than being an alternative, social media is just another way to do networking and referral marketing. If you're struggling to dip your toe in social media, here's how to get started.
As a NZ delegate at the recent PortfolioConstruction Forum Conference in Sydney, here are the key pointsfor NZ advisers to take on board from this year's Lifecycle Investing theme - which should raise the priority of financial advice in clients' minds.
As people get older and live longer, mature and elderly clients are starting to make up a larger part of advisers' client bases - and they bring a lot more issues than just their finances.
Of all the challenges for financial advisers, one of the most daunting is persuading clients to discuss their finances with family members.
The World Economic Forum released its Global Competitiveness Index last week - and NZ is up five places to 18th most competitive economy in the world, three places ahead of Australia.
Back in February, we published an expose on links between Phoenix Forex, OakFX, World Investor New Zealand magazine and various others. Over seven months later, the Financial Markets Authority has warned the public.
I’ve discovered scientific evidence of the value that good advice creates! The impact of good advice has been quantified in a 83-page study, with surprising findings.
In theory, investment advisory businesses should be booming but the reality is many are just limping along. Where is the disconnect and what needs to change?
In a report that will no doubt be read closely by the Financial Markets Authority - and therefore should get the attention of New Zealand advisers - the Australian Securities and Investments Commission (ASIC) has made 12 recommendations for financial advisers.
As of 1 July, anyone who has permanently immigrated between Australia and New Zealand can transfer their retirement savings to their new homeland. But it's not a simple like-for-like swap and it's already had its problems.
Contrarian investment ideas are hard to find. After a 20-year bear market and with the Nikkei still 60% below its 1989 high, Japanese equities are an attractive contrarian investment.
The DIPPIE population is sizeable, growing, and affluent - and, they have a number of pressing needs including finding a financial adviser they can trust...
Looking beyond the immediate risk of Fonterra's product safety issues, over the medium-term, we continue to see sufficient global and domestic economic momentum to support higher bond yields.
In an ideal world, clients would immediately implement the advice they're given. The real world is very different, of course. The growing body of behavioral finance and psychology research can help.
In this bigger picture stuff, I think you'll find some valuable seeds to help you think about - and change or reconfirm - your practice's current approach to investment.
Two years since inception, the FMA's CEO will leave after he finishes his minimum contract period in October. We asked industry bodies, advisers and the FMA for their views on how the regulator has done its job over the period.
Regulatory reform of financial advisers is still taking shape around the world. As advisers, we remain (just!) in the time of creation and opportunity – but there is no time to waste.
The younger generation of clients who are now in their 30s and 40s has a very different financial outlook than their Baby Boomer parents. Advisers need to retool their client service and advice models to appeal.
Finding the right person to join your financial advisory business can be tough. financialalert spoke with various sized advisory firms about their approach to taking on new advisers.
It's not enough to say the right things or have the right credentials. Advisers have to be able to translate what they do for clients from the abstract to the concrete, to set themselves apart.
This presentation discusses what advisers from around the world are doing to ensure their clients are more likely to implement the recommendations of their financial adviser.
Napoleon famously wanted his generals to be lucky. But in funds management, skill is more dependable. Batting average gives some good insights.
By 2031, the number of Kiwis aged 55-plus will grow to around 32% of the total population. Advisers need to develop different skills needed to really understand and help clients as they approach and enter retirement.
A Floor/Upside strategy should form the foundation of an investor's approach to retirement - and the good news is, many advisers already use a variation without realising it.
Growth indicators improved in June, despite equity markets being rattled. In the absence of an inflationary shock, we think equity markets will trend higher.
This week, the FMA announced that three advisers are being brought before the Financial Advisers Disciplinary Committee (FADC). We asked what happens with disputes and what PI cover is appropriate.
It is one of those ideas that come up again and again without ever being properly scrutinised – that a sovereign wealth fund (SWF) like Norway's is a fantastic idea that deserves to be copied elsewhere, even in New Zealand...
Consumers have a minimum level of expectation of a profession - requiring fundamental shifts in the ethical, educational and protection of public interest standards of some representative financial adviser organisations.
From today, advisers must comply with the Anti-Money Laundering and Countering Financing of Terrorism Act of 2009. We spoke to the regulators and advisers about what that really entails.
The challenge for most advisers is that they've built practices as generalists and aren't sure how to make the transition to become specialists. There are three basic steps.
Churning of KiwiSaver accounts has many financial advisers up in arms over alleged unethical and potentially illegal tactics by large financial institutions.
After years of talking with clients coming to his firm from other advisers, one adviser compiled a list of reasons they left. I suspect these practices are widespread.
New research suggests that advisers should stop telling Gen X and Gen Y clients to save more now and, instead, simply help them to save more tomorrow.
Increasingly, financial advisers operating in the investment space are reassessing their fee structures. Strategi has identified some remuneration trends.
As the US economy continues to recover from the GFC, the US Fed faces an almost impossible balancing act. Closer to home, the RBNZ faces an almost impossible balancing act of its own.
This is one of those times when investors should not expect to complacently buy what has worked well recently and achieve good returns.
A superb snapshot of the NZ advice industry has been provided by The Skills Organisation (formerly ETITO), that confirms some widely held views - and should change some of our other perceptions of the industry at large.
The Institute of Financial Advisers presented its highest honour, the Outstanding Contribution to the Profession Award, at its annual conference last week.
Last week I spoke to an adviser about how he turns one of his favourite recreational activity into new clients. It's simple and has paid big dividends.
Nearly six years after KiwiSaver launched, there are now more than 2.1 million people contributing with $14.5 billion in the scheme. But many advisers are shunning KiwiSaver-only clients as large institutional advisers reel them in.
Investors became more risk-on early in 2013 and ASEAN equity markets were among the biggest beneficiaries.
However, some headwinds have appeared in the form of heightened political risk and pockets of overheating.
Most people don't understand money - they understand what it does for them. Once you realise this, it is much easier to build a relationship with clients in a productive, less stressful and more holistic way.
Australia is looking at enshrining the term "financial planner/adviser" into law. New Zealand is already a step ahead. We look at the titles advisers are using, what the law allows, and what advisers may call themselves in the future.
Make sure you think about how choices are delivered to your clients - choice architecture can help nudge them in the right direction.
The vexed issue of replacement business is bubbling up again. An adviser's obligations under the Code essentially pitches adviser against product supplier.
Whenever clients are thinking about putting money that would have been invested into paying back their mortgage, they may be disadvantaging themselves.
Are low volatility equity funds something investors should be including in their portfolios? There are a range of issues to consider.
Should you have a minimum asset threshold for new clients? Should there be other factors that you look at beyond just assets? How do you communicate your criteria to prospective clients?
With interest rates at historic lows, and likelyrate rises ahead, what are the implications for building the fixed income part of portfolios?
A sizeable number of the Disclosure Statements we've reviewed are unnecessarily complicated and are turning a straight forward process into a nightmare.
There are any number of ways to approach and discuss the issue of valuing financial advice. Perhaps, though, it is time to consider it from a slightly different perspective. Could it be that financial advice is worthless because of the client?
It's time we financial planners stopped viewing clients who don't implement as "bad clients" and instead develop the skills to motivate them to do it.
With 440,000 pre-registered to buy Mighty River Power, we asked some advisers about their view on the role of direct equities in investor's portfolios.
What we really need from the coming review is policy that addresses retirement income for young New Zealanders.
Is the bull market over for gold? I doubt it. The next phase could be quite explosive, particularly for the gold mining stocks.
Price is an issue only in the absence of value. Advisers who want to ensure future success need to adopt the credo: "Value isn't everything, it's the only thing".
A few weeks ago, a small contingent of Kiwi advisers travelled to Sydney to join around 500 practitioners for the annual PortfolioConstruction Forum Markets Summit. We asked the Kiwi delegates how what they heard is shaping the way they construct portfolios.
Could financial advisers who offer comprehensive services be doing a better job? Two recent studies shed a positive light on the potential of the financial planning profession to do right by clients.
A recent study confirms that expert financial advice does change consumer behaviour - and consumers see it as more valuable.
Most planners struggle to reach and effectively serve Gen X and Gen Y, tending instead to focus their on baby boomers. But it's quite possible serve at least a fairly wide swath of Gen X and Gen Y.
A new study of using brain imaging technology suggests investors second-guess non-CFP advisers more than those with the credential.
What is an appropriate track record for a fund before it should be used?
Investing in yourself is worthwhile for financial advisers – but that message doesn't seem to have got through. Now hard evidence is starting to emerge from overseas that higher education pays for financial advisers.
World Investor New Zealand magazine gives the appearance of serious quality. What's interesting is what's not said as much as what IS said. Transparency and disclosure should be as stringent for investment publications as for investment advisers.
In a first, an AFA has had his license cancelled by the FMA just weeks after it was granted, and while the FMA and the SFO are still only investigating a complaint against him. Not even David Ross has had his license completely revoked by the FMA. financialalert asked some industry insiders what the case means for other AFAs.
Here's one adviser who has mastered social media and how it fits together, to stand out in the profession's "sea of sameness".
The reality is that saying "You can trust me" is actually a terrible way to establish trust, especially when it's done using complex jargon that most consumers don't understand.
When Lance Armstrong finally confessed to doping, he received widespread condemnation. If only there was similar outrage over doping in monetary policy.
It's an regrettable reality that financial advice remains out of the reach of most people. financialalert looked at when it might be practical to advise someone without charging them a fee and the implications...
As a result of the findings of its latest AFA Monitoring Report, the Financial Markets Authority says it expects all Authorised Financial Advisers to review their processes...
The FMA's latest AFA Monitoring Report makes interesting reading. The findings support our conclusion after our review of over 500 client files in the previous 12 months - that is, that many AFAs need to do a better job with Statements of Advice.
If you cannot answer that question clearly and quickly, you have a serious marketing problem. Frankly, if you can't answer that question in a meaningful way for a customer, then you probably don't deserve their business.