History repeats and mirrors aftermath of 1987 crash

Following the 1987 financial collapse many of the perpetrators simply reinvented themselves and have been a part of New Zealand’s current demise. Sadly it seems the same thing is continuing unchecked by authorities.

EUFA members have over several months reported changes with their advisors heading off in the same game shielded by a new company. It is evident that some who have been exposed either publicly or by individual investor claims are trading their old desks for new ones and/or changing their shop fronts, but still operating and taking no responsibility for the mess they helped put investor’s lives in.

EUFA was set up in 2006 as a result of severe losses experienced by the McSorileys of Wellington. In 2000 Mr McSoriley contacted their trusted AMP Advisor for financial advice in relation to money obtained from the sale of their family home which they needed to protect. The Advisor had been their insurance agent for almost 20 years. As a result of the “financial advice” they received the McSorileys lost their house money – A catastrophic and life shattering outcome for them.

What has transpired with the McSorileys advisor is a classic example of how financial advisors reinvent themselves. The McSorileys Advisor changed from the AMP Company he traded under when selling product to them in 2000 and joined another AMP advisory company trading as ‘Coastal Financial Planning Ltd’ situated at 18 Ihaka Street Paraparaumu.

Coastal Financial have also recently reinvented their company front. The new company has sprung up with what appears to be the same team, at the same address, under a new shop front representing ‘Step Financial Services’ in new Blue AMP Colours. They are so new their website is incomplete.

Jim McSoriley said from Wellington this morning “Our Advisor has stayed with AMP since he advised us in 2000 but has operated under three different companies during that time. As a country, the powers that be have done nothing to protect us by allowing these obvious and blatant disguising practices to continue.”

Investors who thought they were dealing with AMP found that in fact they were dealing with advisor companies selling AMP products which complicates legal matters and ring fences AMP from claims.

Coordinator of EUFA, Suzanne Edmonds said today “We will be taking this particular matter up with the Minister of Commerce as the AMP business practice in the case of the McSoriley's is a significant and glaring example of the unjust practices in vogue and which are intended to manipulate the public .”