Consumer Survey: Ban Commissioned Advisers

Ban Commissioned Advisers - Fast Track KiwiSaver Regulation
Consumer New Zealand's recent analysis of financial advisors is further evidence that commissioned salespeople must be prevented from providing financial advice, according to investment manager and commentator Gareth Morgan.

"Despite the industry's promises to tidy up their act, the latest Consumer report shows that commissioned sales people are unlikely to offer unbiased advice. New Zealand needs to follow the example of the Australian authorities, who have moved to ban commission in the financial advisory sector,'' Morgan said.

"Consumer's study found that less than 20% of plans provided by advisers were any good, that costs were not transparent and failed to equate to quality unbiased advice. The study also noted that until commissions are banned this won't become the industry norm."

Despite the awful pain felt by New Zealand investors over the last two years, the Securities Commission appear to have their head still firmly in the sand and have taken no effective action, and the new financial adviser regulations are still a year away.