Effective disclosure requires better financial literacy
Aaron Gilbert is associate professor in the AUT finance department, researching the readability of financial disclosures.
He has completed work that showed product disclosure statements for KiwiSaver, while shorter under the Financial Markets Conduct Act, were not delivered in a way that was accessible to the average KiwiSaver member.
He said the financial advice disclosure regime as outlined by the Ministry of Business, Innovation and Employment in its recent consultation, did not seem primed to deliver results that were any better.
MBIE has suggested it wants to deploy a principles-based approach to requiring advisers to deliver information to their clients, including what they are paid and how, and what products they have access to.
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