“It’s more of a gut feel of just looking at the maths and anecdotal feedback from discussions with the industry and how the limited number of AFAs are now needing to prioritise the personalised advice they provide,” he says.
“It’s important not just to knee-jerk at the numbers. We need to understand why there aren’t more AFAs.”
Mr Ireland notes some of the AFAs do not even deal with KiwiSaver, particularly not for those with small balances.
Other advisers are qualified and capable of becoming AFAs but do not do so because they don’t consider the benefits worth the extra cost and compliance burden.
Our securities law regulates everything right down to free speech - that is, there is none - and then we wonder why there are no advisers.
Given the risk faced in advising under NZ securities law, I wouldn't trust any adviser doing so, as they would by definition not be prudent.
Indeed, more and more, I don't know why prudent people would take the risk to build the companies to invest in, to be advised on.
A little over four million total population and so many laws: what a farcical kindy of a country we are.
For the record: I didn't vote for it.