Media Release
For Immediate Release
7 July 2005
Task Force Targets Confidence Tricksters
Leading economist Dr Gareth Morgan has applauded the Task Force on Financial Intermediaries on its proposal to restrict
those who can call themselves a “financial adviser”.
“The Task Force is to be congratulated on having the honesty and guts to confront the investment industry over the
corruption of the financial advisory business,” said Dr Morgan.
“Yesterday’s announcement that many product pushers opposed the restriction of designated occupations like “financial
adviser” was no surprise and shows the industry is doing all it can to water down the Task Force proposals.”
Dr Morgan has previously published studies showing financial service companies often pay commissions to salesmen who
then go out and dupe the investing public by describing themselves as independent "financial advisers".
“Many financial advisers are nothing of the kind and deliberately mislead people into believing that they are acting in
their best interest. This is a scandalous state of affairs that the funds management industry has underwritten for
decades.”
“The Taskforce has done the investing public a service by highlighting this confidence trick by the insurance industry.
The government would do well to heed its recommendation and ensure that financial advisers can only receive their
remuneration directly from the investing public who hire them for advice”.
The task force is due to make its final report to the Minister of Commerce in the next few weeks.
Ends