Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Research and understand the risks before investing your cash

Research and understand the risks before investing your cash


With the economy improving and some consumers being in a position to invest, the Banking Ombudsman Scheme has published a quick guide on investing. The guide is based on the Banking Ombudsman’s insights from the global financial crisis and is designed to help consumers avoid making similar mistakes.

“Listening to affected customers during the GFC, it became clear that many thought investing through a bank – no matter what the product was – was risk-free or close to it. The reality is that no investment is without risk: even term deposits carry a degree of risk,” says Banking Ombudsman Deborah Battell.

“Customers can be surprised to learn that they are ultimately responsible for making the decisions about which products to invest in. Financial advisers do just that – provide advice. They do not guarantee you will always make money.

“Customers must therefore research the options and products available, read the information provided about recommended products and tell advisers about acceptable levels of risk and how long they want to invest for.

“For first-time investors this means familiarising yourself with the finance sector. If you want to make good investment decisions, talk to people you trust who are experienced investors and research the options.

“This may not stop you losing money due to market fluctuations, but it may save you from investing money you cannot afford to lose in high risk ventures,” Ms Battell said.

On the other hand, financial advisers – including those employed by banks – also have obligations to customers.

Under the Financial Advisers Act, advisers must not mislead customers, they must ensure their recommendations meet the customer’s risk profile and objectives, and they must have gone through a robust investment advisory process.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news