GRTV: Code working group, active v passive and the rising cost of financial advice

In this latest episode of GRTV, Mike Newton of advice firm Newton Ross discusses the "scary" make up of the new code working group, Hobson Wealth Partners' Warren Couillault talks about the rising cost of providing financial advice and finally Paul Moore of PM Capital explains why passive managers’ luck just might run out.

Friday, July 14th 2017, 10:41AM

In this latest episode of GRTV, Good Returns publisher Philip Macalister sat down with Mike Newton, of advice firm Newton Ross, Warren Couillault, executive director of Hobson Wealth Partners and finally Paul Moore, of PM Capital.

In the first interview, Newton discussed the make up of the working group developing a new code of conduct for financial advisers in New Zealand, and how it was scary that none of the nine people chosen to develop the new code were financial advisers.

He said while some of the group had strong industry knowledge, or product manufacture experience, whether they could develop a practical code that would work for advisers was another question.

In the second interview, Hobson Wealth Partners' Couillault talked about the cost of providing financial advice and why he believes it is now 50% to 100% more than it was five years ago.

He said roboadvice would play a big part in the sector in future and "different ways of doing things must include automated delivery in our sector.”

In the final interview, PM Capital's Paul Moore reveals why he believes passive investing is reaching peak momentum and why that should throw up more opportunities for active managers.

Low interest rates had boosted asset prices, which helped passive investors, he said. But that could change over the coming years as interest rates started to head up more seriously.

Moore added, “If you just want general market exposure, take a passive fund. If you want a bit better than the market and to be a genuine investor, then you’ve got to be active.”

To download as an audio podcast, click here.

Also available on SoundCloud.

Tags: Active v Passive CFP Code Committee compliance financial advisers funds management Hobson Wealth interest rates investment Newton Ross PM Capital regulation roboadvice