How do you rate the level of financial advice in NZ?

Updated: 10:05AM Monday November 16, 2009

A Consumer NZ investigation of financial advisers has found the advice being given was "scandalously poor".

The results appear to show that lessons have not been learned from the collapse of finance firms in this country and the global credit crunch.

Consumer NZ sent mystery shoppers to 33 financial advisers, from large institutions with in-house advisers and agents, sharebrokers and nationwide adviser chains to small standalone firms.

How do you rate the level of financial advice in NZ? Here is the latest selection of Your Views:

Huia Gold Coast (Queensland)
Monday November 16, 2009 In the case of Hanover it is clear the Directors of such companies have no conscience at all and indeed why should they?

The Securities Commission is as useless as tits on a bull? Transparency of financial statements, What a load of f* bollocks?

These self appointed pillars of society get away with doing such sneaky underhanded crap because the system in NZ allows this to happen?

Those at the top of the food chain have financial clout which enables them to do things that would cop a jail sentence in Australia?

The interconnectedness of the old boy networks allows small investors to get ripped because they either lack the necessary "factual" information to make an informed decision or to lazy regardless?

People see the likes of Eric Watson and think oh my gosh it must be a good thing because dear old Eric is in on it? Boycott sounds a good idea but the downside is people work in those stores and everyone needs their jobs right now.

I think the Securities Commission need to grow some balls and do their bloody job properly, start having some of these directors charged with fraud.

westie (New Zealand)
Monday November 16, 2009 My parents,thought thrifty all their lives,were conned by the dynamic duo of Watson and Hotchin.This duo meanwhile continues to spend, spend and spend.I saw the item on Hotchin's multi-million dollar property in Parasite Drive(as many people call it though I know a couple who live there and are definitely hard workers).Many of us were fooled or misled into investing in Hanover.It wasn't greed but we were lead to believe that Hanover was a safe option.I have learnt so much over the years that most financial advisors in NZ are not worth listening to.You go by your gut feeling when it comes to your finances.If you feel uncertain about putting money into something then don't.You may initially kick yourself for loosing out on an investment but if that company goes belly up and you applied your caution then you will still have your money whereas many do not.Right now my advice is to avoid the sharemarket like the plague.

Deal to Crims (Rotorua)
Thursday November 12, 2009 A great piece on Close-Up last night by the advisor who warned investors of the actions of the Hanover Directors.

The investors have been manipulated and misled to the point that they have now lost everything.

This advisor suggested that the Hanover Directors were completely sef-serving and made false promises to get themselves off the hook while digging a deeper hole for their investors.

He suggested the public have other means to get even with these directors by boycotting other businesses like Briscoes, Nole leeming and Rebel Sports owned by Eric Watson.

Why shouldnt the Hanover Directors suffer just as much as the investors. More in fact - but will they?

They will get away with it - only if we let them. I suggest we boycott their other businesses as suggested on Close Up. They are not ethical businesspeople

Keith Wellington (Wellington City)
Wednesday November 11, 2009 Financial planners know little more than the people whose money they are investing for them. Financial planners are more interested in the commission they get paid, and the trailing fees they continue to receive.

One only has to look at the Financial planners who put people into Hanover, then when the moratorium option came up last year told their clients to vote for it. As can be seen in the announcement today Hanover had no intention of paying back 100 cents in the dollar with no interest over 5 years and is now saying 70 cents in the dollar. This time next year it will be 30 cents in the dollar.

As for entrusting lawyers with one's money, one should consider first the number of lawyers in jail for misappropriating client's funds.

Deal to Crims (Rotorua)
Wednesday November 11, 2009 Aside from financial advice I am stunned by the bank's insistence to get documents signed in front of a solicitor.

This happened to me recently and the solicitors bill was $800.

I want to deal with a bank that works hard to make its customers rich. Security is OK, but adding needless cost to their customers is dumb. Now, I am $800 poorer and the bank is actually more at risk because I have that much more debt than I would otherwise have.

I also remember once before when remortgaging a house they insisted on a valuation and subsequently I proved that the figures they used were not based on that valuation - it cost me $500 for absolutely nothing.

Shame on the banks.

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