So long as financial planners in NZ continue to receive commissions, they will keep recommending investments that may not be in their client’s interests, but which instead enrich the financial planner.

For example, finance company Bridgecorp paid twice the commission of other companies and consequently many, many financial planners recommended it to their clients. Now that Bridgecorp is in receivership it owes thousands of investors all over NZ the sum of $450 million. Liz, how much did you make from recommending Bridgecorp to your clients, before it went bust?

Rather than denigrating Consumer NZ, which for 50 years has been providing impartial and unbiased advice to the public, you should instead use your influence to get your own industry in order, before the Government steps in and does it for you. Already the Government has had to force advisers to tell their clients what their qualifications and experience are; and criminal records checks are just around the corner under the new Act.

Just this week an Australian report has recommended to its Government that it put an end to financial advisors receiving commissions, and the FSA in England wants it outlawed in three years.

Wake up and smell the breeze of discontent Liz, instead of trying to defend the indefensible.

I spent > $3000 getting advice in 2000 from a well known ‘big 5′ company and being advised by a person who has gone on to become a well known published author. the advice was — set up a trust, sell your investment properties, get diversified, give all money to us to invest. Cant find fault with her but it was generic advise.

I am glad I did not sell property and put it in set and forget investments as suggested by the person. But am pissed off (with myself) that I took their “diversify” advice seriously and did not buy any more property just before the mother of all booms.

Mystery Customer Research needs to be set up properly, from the text above I have doubts about the research methodology.
Selection of credible shoppers, validation, testing etc are crucial to a successful mystery shopping program.

Subjective questions in a mystery shopping research program are a definite NO NO. Mystery shoppers are trained to perform evaluations and will never be unbiased.

Mystery shoppers should never give ratings but answer closed questions and add comments to answers to explain.

We are always happy to advise how a good mystery shopping program is conducted. http://www.helionresearch.com

This is exactly where the problem lies.
New Zealanders in general have a problem with paying people for services & don’t believe in business making a profit, as there has been to much profiteering in the past (and still is with SOE’s, Banks Finance co’s etc).
The mentality of the Nanny state, where everyone expects to be given whatever they want for free, without having to work for it, drives expectations in all areas.
This drives all the real costs to be hidden within proposals/ items/ recommendations etc rather than fully disclosed as may happen in Aus & other countries.

The other side is the fierce DIY attitude -why should I pay someone when I can do it myself