A recent survey by the Financial Markets Authority (FMA) has revealed that not only do one in four Kiwis not know how to choose a financial adviser, but the same proportion is concerned that that the person they do pick will try to sell them something they don't need.
We reckon that's pretty sad, but we understand the feeling. Kiwis entrust financial professionals with over $100 billion, according to the FMA's estimates, and if there's one thing we want to teach you, it's that you should be careful with your money.
The fact that you are cautious with who you entrust it to shows that something is certainly working!
Bringing confidence back
Hopefully, however, recent initiatives by the FMA should re-instill some confidence in the financial advisory and capital management industry. A recent announcement has revealed that their emphasis for this year has been placed on licensing more fund managers, ensuring that they are reaching the standards expected of them.
"Licensing is about instilling confidence in the industry by helping to manage provider conduct and monitor major risks across the sector. It is just the beginning of a transformation in the relationship between the industry and the regulator," said FMA Chief Executive Rob Everett.
This increased training will hopefully demonstrate to the minority of Kiwis who don't use a fund manager to help them grow their wealth through KiwiSaver, superannuation or managed funds.
If you're interested in achieving your financial goals with an adviser you can trust, get in touch with us here at Goodlife Financial Advice. Whether it's KiwiSaver or residential property investment, we can point you in the right direction for success.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert
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