New courses for bourses fail to find market

The New Zealand Exchange has shelved its aim for a home-grown investor and broker education course, saying there is not enough interest in learning about the sharemarket to justify its plans.

In April 2004, it asked for locally based education providers to tender for the job of running NZX training courses, including an overhaul of the qualifications needed by sharebrokers.

But NZX spokeswoman Ellen Read said those plans had been shelved.

"Experience tells us that the demand for investor education is steady but not high in New Zealand compared with other developed markets," she said yesterday.

A key goal of the local education for brokers had been to raise standards while simplifying the educational component of the accreditation process, the NZX said when disclosing the plan in April 2004.

For investors, "we plan to provide accessible, relevant sharemarket-related education courses to encourage more people to invest ... with the benefit of education behind them".

These courses were supposed to have been ready in January last year, but this never happened.

The shelving of the education programme comes as calls grow for more people to invest in productive assets such as shares rather feeding the overheated housing market.

Hopes for a home-grown investor and broker education programme now appear to be riding on the success of the Government's new KiwiSaver work-based savings scheme.

Open to two million people, KiwiSaver will be kick-started by the Government paying $1000 into each new retirement account.

Due to start next year, KiwiSaver is aimed at encouraging people to save. Budget figures estimate it may attract 415,000 workers in its first three years.

Read said KiwiSaver would give more people "a direct personal stake" in their investment future.

Now, anyone wanting to study for the NZX Diploma - the minimum qualification to become an accredited NZX adviser - must go through the Financial Services Institute of Australasia, which acts as a correspondence school.

Grant Williamson, a partner at brokerage firm Hamilton, Hindin, Greene, said it would be better if education for brokers and retail investors was run from New Zealand.

"It is a real shame if something like that is not established, because I think the public does need to be educated on the advantages and disadvantages of sharemarket investment.

"A lot of New Zealanders are rather naive when it comes to that form of investment, say compared with the Australians."

Williamson said the 1987 sharemarket crash had not helped - with people still being warned off investing in shares nearly a generation on.

When it first asked for tenders to run an education course in 2004, the NZX said it was "paramount for the integrity of the market and protection of investors that NZX brokers and other market participants continue to be highly trained and skilled".

There are already courses available for new investors, mostly offered through tertiary institutions. There is also information about getting started on the NZX's website.