Investors Welcomed by Retirement Commissioner
Emphasis on Building Trust for Investors Welcomed by Retirement Commissioner
Retirement Commissioner Diana Crossan has welcomed the government response to the Capital Markets Development Taskforce saying rebuilding trust in capital markets is essential for investors.
“If we want New Zealanders to save for their future they need to be confident about putting their money into capital markets. I am delighted to see that the government has acknowledged that a significant part of that confidence relates to financial literacy.”
The government has called for a coordinated approach to financial literacy initiatives and wants the first joint agency meeting to take place within the next two months.
“This is a positive way to build on the work done by the Commission and others in recent years in developing a national strategy for financial literacy. Much work has already done in this area and this announcement provides us with a good opportunity to build a coordinated, appropriately resourced, nationwide approach.
“Investment education is part of a continuum. It’s important that we have a coordinated strategy to meet the needs of New Zealanders from those seeking basic budgeting advice through to those considering investment opportunities.
Diana Crossan says the government’s commitment to introducing plain language in investment statements and prospectuses is also an important step in helping investors make informed decisions.
“Much of the investment material consumers receive now is opaque and complex. People don’t trust what they can’t understand.
“Restricting the use of the words ‘independent adviser’, and imposing a clear fiduciary duty so that the clients’ interests are paramount, would be two further fundamental steps to help rebuild New Zealanders confidence.
“I look forward to the decisions of the Code Committee for Financial Advisers which will address these two recommendations from the taskforce.