tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, November 1st, 10:39AM

News

rss
Latest Headlines

FMA: Dangers of economic uncertainty in a post-covid world

Lack of investor education, KiwiSaver fund switches, and complex scams, all signs of economic uncertainty here to stay, says FMA.

Friday, October 23rd 2020, 6:00AM

Liam Mason, director of regulation at the FMA, delivered good news and bad news to the Financial Markets Law conference attendees assembled yesterday at the Aotea Centre. The good news, according to FMA reporting the “markets have recovered with astounding optimism.” The bad news, quite a bit else.

Mason presented the data that the FMA had collected over the covid period and been analysing in the months since. 

Firstly, Mason ran through the KiwiSaver fund switching numbers. Not surprising was the previously touted 254,000 switched during the April-March period up 54% on the previous year. Over 1.6 Billion dollars were moved into conservative funds.

But what Mason said was “a real concern to the FMA” was that 33,000 people switched twice, 7000 switched three times, 3000 switched four times and 2500 switched five times.

“This highlights the need for the FMA to educate people on risk appetites,” Mason said, “If you don’t have a financial adviser it is really easy to be making these kinds of decisions. The data shows that far more education is needed.”

Adding to the stress of this period for consumers was the surge in scams and cyber crimes. Mason said that the scammers philosophy of “never let a good crisis go to waste” was certainly utilised during the covid period, which saw a 45% increase in scam warnings issued by the FMA.

Scams are often outright stealing the identity of New Zealand companies. “It is almost flattering to New Zealand how popular our companies are in being used by fraudulent enterprises.”

Mason said that, “If you are a New Zealand company with ‘cyber’ in your name it is highly likely you will get your identity stolen in the near future.”

“We have seen identity theft and online scams ramp up over the covid period, and there is no sign that they are going down in future.”

Mason highlighted these issues to show that times of crisis bring out challenges of their own. With economic uncertainty looking like it is here to stay, it is best for those in financial services to be weary of what kinds of elements this environment brings out to play.

Tags: FMOY

« [The Wrap] Divorce for AMP Wealth Management and AMP CapitalMann on a mission to diversify financial advice »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 5.44 - - -
AIA - Go Home Loans 7.99 5.99 5.69 5.69
ANZ 7.89 6.59 6.29 6.29
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.99 5.69 5.69
ASB Bank 7.89 5.99 5.69 5.69
ASB Better Homes Top Up - - - 1.00
Avanti Finance 8.40 - - -
Basecorp Finance 9.60 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.94 - - -
BNZ - Rapid Repay 7.94 - - -
BNZ - Std 7.94 5.99 5.69 5.69
BNZ - TotalMoney 7.94 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.79 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 7.65 5.99 5.75 5.69
Co-operative Bank - Standard 7.65 6.49 6.25 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 6.40 6.10 -
First Credit Union Standard 8.50 7.00 6.70 -
Heartland Bank - Online 7.49 ▼5.65 ▼5.55 ▼5.55
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.00 6.50 -
ICBC 7.49 5.99 5.65 5.59
Kainga Ora 8.39 7.05 6.59 6.49
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.75 6.89 6.59 6.49
Kiwibank - Offset 8.25 - - -
Kiwibank Special 7.75 5.99 5.69 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 8.44 ▼6.39 ▼6.09 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.99 6.95 6.29 6.29
SBS Bank Special - ▼6.15 5.69 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 5.44 ▼5.15 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.69 6.79 6.49 6.49
TSB Special 7.89 5.99 5.69 5.69
Unity ▼7.64 5.99 5.69 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 8.50 ▼6.19 ▼5.79 -
Westpac 8.39 6.89 6.39 6.39
Westpac Choices Everyday 8.49 - - -
Westpac Offset 8.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 6.29 5.79 5.79
Median 7.99 6.17 5.79 5.69

Last updated: 30 October 2024 9:36am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com