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Where do you get financial advice?

questionsandanswers
In 2011 Dr Claire Matthews from Massey University was commissioned to explore Kiwi’s attitudes towards KiwiSaver and related matters.  Surprisingly here’s what she uncovered through her research about how Kiwi’s get their financial advice:

Dr Matthews discovered that the main source of information on financial matters is family and friends. Financial advisers, books/articles and the Internet are all used in approximately equal proportions. A small number of respondents claimed to rely on themselves and their own experience and education.  Dr Matthews said that while these people might be engaged in their financial investments and making independent decisions, it is a concern that they may do so in a vacuum without seeking reliable and timely information from elsewhere.

 

Source of Financial Advice


FINSIA - Source of Financial Advice

 

Choose your Financial Adviser well 

financialplanningcoupleGetting the right advice before you save or invest for your future is important.  You need to feel comfortable with your adviser and be confident they understand your needs and goals and will give you personalised advice tailored to your individual needs.  Recently the government changed regulations around who can give financial advice and how it’s administered.  Financial advisers now need to adhere to strict rules and regulations, and be qualified using a national approved standard.  We are proud to have always upheld the highest of standards for our clients and as AFA's (Authorised Financial Advisor) and RFA's (Registered Financial Adviser) are qualified to give you the best advice possible.

 

Check their qualifications
It's important to ask the adviser what they are qualified to give advice about.  Are they a Registered Financial Adviser ( RFA ), or an Authorised Financial Adviser ( AFA ) ? Dealing with an authorised or registered financial adviser means that you will have peace of mind because you will be doing business with a professional who is both experienced and has undergone many hours of training to qualify.  By working with an AFA or RFA you will have a solution tailored to you representing the best the market can offer, not limited to one company’s services and products.  You can be confident of the high ethical standards and professional care that an AFA or RFA will offer, and if for any reason you are unsatisfied, there is a dispute resolution service available. 
Remember to ask about background and experience, professional associations they belong to, number of years in business, and how many clients they have.  This will give you a good idea about how experienced and professional the financial adviser is. 
 
Iconic Financial has advisers with over 40 years experience collectively.  We belong to the PAA (Professional Advisers Association), Newpark Financial Services, and the IFA (Institute of Financial Advisers).  We have both AFA and RFA's available to give excellent advice, and we regularly service over 500 clients.

 

 

Ask how they are paid
Does the financial adviser get paid a salary or commission?  You need to know if they only sell certain products or deal with certain providers.  It can affect the advice they give you and what they try to sell you.
 
Iconic Financials advisers are paid a number of different ways depending on the type of service offered.  Commissions paid on investments or insurance placed on your behalf, and fees.  In many cases clients seeking investment advice are offered a choice of commission or fee.  In addition advisers occasionally receive other benefits from suppliers like attending financial services conferences and training sessions.

 

Get it in writing
Ask for a written disclosure statement about the adviser's qualifications, experience and how they make their money.  They are required to give you this within five working days.
 
We have made Iconic Financial’s disclosure statement available online.
 
What service do they provide
Ask what services they provide and what the costs are.  Ask if the initial consultation is free and if there are any minimum fees or purchases you have to make.  Find out how they do their research and pick their investment and if they provide regular information, such as a newsletter.  Also ask about follow up service - will they call you, how often do they do reviews?
 
Iconic Financial provide the initial consultation at our cost – so it’s free to you.  There are no minimum fees or purchase you need to make.  We keep up-to-date with market and investment trends via the Internet and our network of connections.  We provide regular information updates via our online blog and monthly newsletter.  We will proactively send you information if you opt-in to receive either of these.  We will also do monthly, six-monthly, and annual reviews, depending on what type of service you require.
 
Check for security
Before you hand over any money check what systems are in place to protect you and your money - ask about things like money handling procedure and use of trust accounts to keep your money safe, professional indemnity insurance and fidelity funds in case something goes wrong, and how your confidential information is kept safe.
 
  • Iconic Financial Ltd does not operate a trust account. 
  • Clients hold their own investment certificates - not Iconic Financial.
  • All investment are made in the clients name - not in the name of Iconic Financial Ltd
  • We do not bank client's money into the Iconic Financial Ltd account
  • Clients cheques are never made payable to Iconic Financial Ltd
  • Our job is to advise - not handle money