New Zealand is doing too little to protect mum-and-dad investors from shonky financial advisers, says one investment company.
"If there was a pedestrian crossing in the middle of Auckland where people were run down every month something would have been done about it by now," said John Atkinson, chief executive
of Plan B Wealth Management. "But more than 34 finance companies have hit the wall since I've been here and I still don't see any progress."
The new Commission for Financial Advisers is consulting on how advisers can be regulated, but any controls will not be implemented before the end of next year - which Atkinson said was too little, too late.
"Regulations make sense, but they need to be in place today," said Atkinson.
"After 18 months working in New Zealand, I am horrified by the lack of concern about trustworthiness that seems to affect so much of the investment industry here."
His company is certified by CEFEX in Toronto - a major North American financial certification agency - and he said other companies should also seek certification in order to assure investors.
"There are a number of reputable financial planning companies in New Zealand, but at the moment we're being tarred with the same brush as organisations which are little more than sales teams for high-risk products."
He added: "I think it's a tragedy when you have so many finance companies going to the wall. They're burning people who can't afford to get burnt."
