Dalziel statement 'deplorable' cop-out says EUFA

A suggestion by Commerce Minister Lianne Dalziel that New Zealanders need to become more savvy about investments is a total copout, says the co-ordinator of EUFA (Exposing Unacceptable Financial Practices), Suzanne Edmonds.

EUFA members have run the EUFA office phone hot and filled the email in box with angry reaction.

The Minister made the comment in Christchurch on Wednesday in an address to the Institute of Financial Advisers and the Financial Planning Standards Board.

"I confess that I do not understand why people who have spent their lives working hard to save their money can invest in products without doing the same level of hard work and taking independent professional advice," Ms Dalziel said.

The minister went on to say that the government could not be expected to play the role of the 'ambulance at the bottom of the cliff' after a financial institution went under, referring to the many high profile collapses in the industry over the last 18 months.

"There is no such thing as a 'sure fire bet' or a 'safe as houses' investment and I am struggling to see why the government would even be asked to provide a legislative backstop to risk," she said.

EUFA members would, not surprisingly, be confused by the Minister's comments, says Ms Edmonds.

Many honest and hardworking New Zealanders did attempt to seek independent professional advice on a topic about which they were not experts.

They had been severely let down by the surprising lack of regulation placed on the "profession" by a government they assumed had their best interests in mind.

``Would Ms Dalziel also give this same sort of advice to a family who loses a loved one due to poor medical practice,' she asked?

``Would she dare suggest that it was their fault for not doing enough "hard work" to find out the best medical course of action? I think not.

``We accept that people who invest without any attempt to investigate their investment must accept responsibility when things go wrong.

``But by approaching (and paying) a "professional independent" financial advisor people were entitled to believe they were doing the right thing, and following the very advice Ms Dalziel has just given.

``She should not assume that all investors who have lost money in the recent troubled times invested without taking advice.'

At a time when many thousands of New Zealanders were feeling tremendous stress over the loss of (in some cases) everything, it was deplorable that such comments were being made by the very people elected to protect citizens' interests, she said.

``We would like the Minister to tell New Zealanders exactly who she considers fit to provide sound investment advice, and what institutions can be trusted.

``We also want to know why this government has not invoked existing laws specifically designed to make sure financial institutions are being soundly managed - and instead let them keep advertising for new investments within 24 hours of closing their doors owing hundreds of millions of dollars?'