[Weekly Wrap] Crackle, bang, pop

This week the FMA's new CEO adds some crackle (but in an nice way). Bang. The courts reprimand Spicers and one of New Zealand's orginal financial planners. Pop goes another KiwiSaver fund.

Friday, April 11th 2014, 9:40AM

Last week's Weekly Wrap didn't quite make it into your inbox for various reason but is now sitting in the Blog section. It's there as it's my first impressions on new FMA chief executive Rob Everret. It's very different from my first impressions of his predecessor Sean Hughes. As I point out in the Blog the purpose of making comparisons is that it, arguably, gives you an insight into how the FMA will evolve under its second CEO.

This week the big issue for advisers is the need to engage in all the various consultation papers being put out by government departments like the FMA and the Ministry of Business and Innovation. The highlight piece here has been Carey Church's call to all AFAs to have their say. It is something we should have run earlier and one of the surprises to me was how many people weren't aware of what has been going on.

This is particularly worrisome, as these papers will help determine the future shape of the advisory industry. You can be absolutely sure that the big organisations like banks and AMP will have their not insubstantial legal teams pro-offering their thoughts. But will their arguments be balanced out with those from truly independent financial advisers?

Sticking with the legal theme a little Good Returns reported at the start of this week that the Law Retirement KiwiSaver scheme managed by Diversified Wealth has closed its doors to new money because of size and the ever growing compliance costs. (It's not really a pop or a bang in a destructive way. Just another provider we will pop off the KiwiSaver register).

Also we followed up the story about high profile financial planner and Auckland City Councillor Greg Moyle getting a rather strong reprimand from a High Court judge. This was really a surprise considering Moyle's standing in the advisory industry and his legal and police background. Today Moyle talks to Good Returns about lessons for advisers.

And if you want more lessons from investment decisions gone wrong read this excellent piece from Pathfinder's John Berry.

Other legal-themed stories was the judgment over restraint of trade provisions Spicers tried to impose on a former adviser. While Eric Watson may be in the spotlight over his falling out with fellow Warriors co-owner Sir Owen Glen, he is also running a verbal war with accountant Bruce Sheppard, who earlier settled a defamation case with Watson and Hanover co-owner Mark Hotchin. Sheppard alleges he has more dirt on the Hanover co-owners, they and the FMA in turn say show us the money. (Pardon the pun - you know the money's gone).

Amongst industry changes we report on the merger of NZ Guardian Trust and Perpetual Trust. Last year I caught up with the man behind this deal, Andrew Barnes, and he assures me this "sleepy" supervisory sector is about to see lots of change. Stay tuned as they say.

You can read the latest People News here

One of the most interesting product news pieces this week was AMP trialling an online direct to consumer life insurance product. It's worth having a read and checking out reaction from advisers, [Read on]

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