[Weekly Wrap] Default advice
According to IFA president Nigel Tate, offering advice for those in default funds is a better option than getting rid of defaults, as suggested by Kiwibank.
Some of the default providers have had success moving members into other funds (which, cynics say, tend to have higher fees), but there is a real question as to whether it is fair to other players in the market that the default system gives them this opportunity.
Financial advisers not associated with the scheme provider would have no access to these people unless they contacted them directly.
There is also a debate about whether a "life stages" investment strategy should be used by default funds.
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