From the Ross Asset Management Investors Group
For Immediate Release
The Financial Markets Authority says overall 59% of New Zealanders have confidence in our financial markets, in a report released today.
We must ask why Kiwis have so little confidence in the markets to which they must entrust their life savings and
retirement incomes. Surely the level of trust should be 90% or higher.
Clearly as a nation we are still shell shocked by the huge collapses that have occurred in our financial markets over
recent years. The level of fraud revealed and the number of Ponzi schemes has been staggering. Further, once the
financial collapses have happened the regulatory environment has been shown to be incredibly weak in recovering the
money that has been stolen. Recovery rates of just a few cents in the dollar are common, leaving investors to wonder
where all the stolen investor money has gone.
The FMA must explain why investor confidence is so low, and what it is doing to improve confidence in investment to a
level that our economy can truly prosper again.