Geo Focus Group New Zealand
Upcoming SlideShare
Loading in...5

Geo Focus Group New Zealand






Total Views
Views on SlideShare
Embed Views



1 Embed 1 1



Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
Post Comment
Edit your comment

Geo Focus Group New Zealand Geo Focus Group New Zealand Presentation Transcript

  • Geo Focus Group New Zealand July 2009
  • History of financial planning
    • Started late 1980’s
    • Advisers came from banks and tied insurance arrangements
    • Evolution of industry body IIAA, IAFP, IFA
  • Key distribution channels for financial advice
    • Banks – Salaried advisers
    • Self-employed financial planning investment advisers and insurance advisers
    • Insurance contracted advisers
    • Share brokers
    • Networks/Dealer Groups
  • What does planning consist of?
    • Advisers not yet registered so no firm statistics
    • Possibly only 20% do comprehensive advice with financial plan
    • Majority do ‘limited advice’ or transaction only
    • Emphasis still on remuneration from product sales not advice
  • What does planning consist of?
    • Traditional financial planner client is a retiree with lump sum and needs income
    • Baby boomer client base
    • Insurance advisers focus on 25 – 50 age range
    • New Zealanders have an obsession with property
  • What does planning consist of?
    • Financial plans cover all disciplines – cashflow/debt management, investments, insurance, tax and estate planning, retirement planning
    • Some college education advice but not huge
    • Tax regime is simple in New Zealand. So bigger focus on investment than tax
  • Regulation
    • Financial Advisers Act 2008
    • Regulations being drafted now
    • Implementation 2010
    • All advisers will need to be registered
    • AFA (Authorised Financial Adviser)
    • QFE (Qualifying Financial Entity)
    • Minimum education standard involved
    • Adviser will now have to pay
  • Compensation
    • Majority is commission
    • Possibly only 20% are fee only
    • Some charge fee and commission
    • Fee largely linked to FUM amount
    • Depends on the type of advice
    • Pressure rising for more fees
  • State of the market
    • Clients suffered capital losses
    • Poor advice
    • Industry in public spotlight
    • Mainly product focus e.g. finance companies and CDO products
    • Residential property perceived better than managed funds and equities
    • Consumer desire still strong for high income returns
  • State of the adviser market
    • Independent investment advisers:
    • - Revenues down 30% - 40%
    • - Some just barely breaking even
    • - Loss of confidence
    • Insurance advisers:
    • - All fine – little change
    • Bank advisers:
    • - Varies from bank to bank
    • - Business good
  • Public awareness of planning
    • Most recent awareness is negative
    • Public does not understand benefits of quality comprehensive planning
    • Government has Retirement Commissioner
    • Government about to spend money on financial education
  • Key challenges
    • Transition to regulation without losing too many advisers
    • Rebuilding public confidence in advisers and fund managers
    • Rebuilding adviser profitability
    • Transfering to new remuneration models
  • Questions?