[Weekly Wrap] Name calling tops agenda

There have been a number of stories this week which have certainly got me thinking.

Friday, October 3rd 2014, 3:06AM

One which has captured readers' attention is around what advisers should be called? One of the big issues in the review of the Financial Advisers Act next year, or one which will generate much heat, is around what we call different sorts of advisers.

The issues that people need to focus on are what the public thinks and understands and whether the requirements placed on each group are adequate to ensure there is consumer confidence. Getting caught up in them and us arguments aren't going to result in a good outcome.

There are some excellent comments here and here from the head of the Code Committee, David Ireland, and Massey University's Michael Naylor.

The van Eyk story keeps rolling on and, if what one hears around the traps, there is still a long way to go with this one. The positive news for New Zealand advisers is that they appear to have found a new home with Craig Stobo's Saturn Portfolio Management.

I was particularly fascinated when the FMA put out a warning about General Equity. Essentially the regulator suggested they were a dodgy outfit and investors should be wary of dealing with them. However our regulator could do bugger all as the business, while pitching itself as a New Zealand building society, actually operated offshore.

Even more interesting is that the General Equity website disappeared soon after the FMA announcement. I wish I took some screen shots as it was quite a good looking website. I would venture to say any investor who saw it would have considered the business to be kosher. I certainly did.

The whole point here, and something which I find particularly frustrating, is that offshore operators promote themselves to New Zealanders in such a way that would clearly breach New Zealand regulations. Just look at some of the stuff which appears on your computer screen if you use Google services or Facebook.

To my mind it is something the regulators need to work on. The General Equity announcement, was, in a way a sign they are impotent here.

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