Survey presents big ‘trust’ challenge to finance

Media release 22 September 2009

Survey presents big ‘trust’ challenge to financial services sector

Retirement Commissioner Diana Crossan says the RaboPlus Financial Confidence Index released today is another wakeup call for the financial services sector to regain the public’s trust.

The inaugural index shows that public confidence in the sector has been severely dented by the global financial crisis and the recession.

“New Zealanders must be able to trust the financial services sector so they can confidently save for their retirement. More than 60 per cent of New Zealanders are less confident investing in the sector than six months ago.

“The industry has got a considerable challenge ahead to prove to New Zealanders that it can be trusted. This survey is a good start as it gives us a benchmark for tracking how well the sector is meeting that challenge,” said Diana Crossan.

The survey is no surprise to Diana Crossan who says that many New Zealanders who contact her say they don’t know who to trust with their money.

“High profile investment failures have raised questions in New Zealanders’ minds about the quality of advice they are getting from financial advisors and how trustworthy it is. We are seeing that reflected in this survey.”

Diana Crossan says one of the challenges facing the sector is the need to communicate clearly. “New Zealanders need clear and concise information so they can make well informed decisions about their investment dollars.”

The Retirement Commission will continue to work closely with the sector to raise the bar on the quality of products, service, information and advice.

The Retirement Commission provides free, independent information to help New Zealanders of all ages understand money matters and manage their personal finances throughout life. Almost one third of all New Zealanders have used the Retirement Commission’s website sorted.org.nz and related resources.

ENDS

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