The New Zealand financial planning annual get-together in Wellington late last month unlocked a number of themes and issues pertinent to the industry on both sides of the Tasman. Correspondent David Chaplin was on the spot and tells all, or at least all he is able to tell, under harsh circumstances.
Day One
Legendary New Zealand poet Sam Hunt set the Financial Planners and Insurance Advisers Association (FPIA) conference alight with a brilliant, shambolic performance. Making full use of the stage, Hunt, recited his poems with passion and commitment but no mention of financial planning.
“…some fires never go out,” the poem ended, “Keep your fires burning folks, goodbye,” and Hunt was off. More prosaic matters followed.
FPIA president Andrew Charles took an upbeat stance on the future of New Zealand’s financial planning industry, announcing a three year funding plan and a firm commitment to appoint a permanent CEO. Soon.
Charles said several major institutions (including BT, AXA and Colonial) had guaranteed funding for the FPIA for the next three years making the appointment of a full-time CEO possible.
“We hope the commercial decision they have made to support our organisation will be rewarded many times over,” Charles said.
However, the ultimate aim of the FPIA, he said, was to be a self-sufficient, independent organisation.
“The funding is a massive milestone and we should embrace it,” Charles said.
“It will raise the industry’s profile both with the public and the Government, helping them realise the important role financial planners play in the economy and in their lives.”
Charles briefly visited the subject of registration for planners and the necessity for the continued input of the FPIA into the process. He said registration will happen and it is important for the industry to play a part now before a “draconian” system is imposed on it by regulators.
Dr Michael Cullen, New Zealand’s Finance Minister, followed on from Charles. However, a media ban was imposed on Cullen’s speech which Money Management will respect. Except to say that nothing was mentioned during Cullen’s 20 minute talk that has not already been reported.
And nothing rhymed.
Day Two
Kiwi legend Rob Hamill opened day two with the inspiring tale of his row across the Atlantic with the late Phil Stubbs.
Raw and bloody hands, extensive chafing, 41 days, one hour and fifty five minutes bobbing up and down in the big sea. Not everyone’s cup of tea.
After morning tea, deputy governor of the Reserve Bank, discussed “The State of the NZ Economy and its Prospects Looking Ahead”. However, a media ban was imposed on this session which Money Management will respect. Except to say that apparently it’s not all bad news for New Zealand but it’s certainly not good news.
Workshop Session Four – 2:15pm – Disclosure: Getting It Right And Getting It Wrong with FPIA board member Simon Hassan and head of the Securities Commission, John Farrell touched on some crucial issues facing the industry.
Farrell put the challenge out to the planning community to lift ethical behaviour in the investment industry themselves pointing out the limited policing role the Government can provide.
“We, the regulators are always behind the play. Don’t rely on us or the law because that’s out of date,” Farrell said.
He said that while better laws and better policing would provide greater public confidence in financial intermediaries, ultimately the industry must look after its own house.
Hassan stressed the need for ethical behaviour and floated the idea of a more standardised disclosure form for FPIA members.
He said the FPIA Board do intend to develop a “standardised but flexible” disclosure format. Disclosure, Hassan said, must meet the three principles of “openness, timeliness and simplicity”.
Workshop Session Five – 4pm: (NZ Retirement Income – Looking To The Future).
A panel of experts chatted amiably about the future for retirement income in New Zealand.
However, a media ban was imposed on the chat, which Money Management will respect.
Except to say that no conclusion was reached.
Day Three
In a brilliant but shambolic performance, Kiwi legend and ex-Prime Minister, David Lange, closed out the conference.
In a series of anecdotes, Lange poured scorn on Governments past and present, made a case for the monarchy and gave support for a new incentivised retirement savings scheme.
The current TTE regime for long term savings, Lange said, acts as a disincentive and needs a radical re-look. He also pointed out the temptations financial planners and investment advisers must resist if the industry is to achieve wider recognition and respect from the public.
As a lawyer, Lange said, he was often faced with problem that the best way to help a client did not always earn the biggest fee.
He gave an example of a case that could have “clogged the courts up for months” and earned thousands in fees but instead he “did the right thing” and gained a $140 fee.
Planners, who help clients meet their savings goals and easing the tax burden on future generations, should realise that the country has “interests in your clients that transcend yours”.
