Two Dunedin-based financial advisers with long industry experience yesterday took issue with aspects of the Consumer NZ report on the industry in which they operate.
Myles Wealth Management director Craig Myles, with 27 years' experience, and Peter Smith Financial Services principal Peter Smith, with 22 years' experience, were critical of the composition of the "expert panel", which included Jonathan Glass, a client adviser with Gareth Morgan Investments.
Mr Myles said the public relied on Consumer to do a good job and he was disappointed one member of the review panel came from an organisation (Gareth Morgan Investments) which was "highly critical" of every other financial adviser.
"The results must reflect this opposition."
It was as though the survey was set up to fail from the outset, he said.
Mr Smith echoed that sentiment, but far more strongly, when contacted for comment by the Otago Daily Times.
Gareth Morgan Investments would have had to be excluded from the survey because of a conflict of interest, he said.
The survey by Consumer found that the financial advice industry was "scandalously poor".
The survey was conducted in Auckland, Wellington, Christchurch and the Bay of Plenty.
Mr Smith said it was disappointing no-one in Dunedin was surveyed.
He suspected Consumer thought there were too few advisers in Dunedin outside of the main ones surveyed nationwide.
There were 1400 members of the Institute of Financial Advisers, but of the 33 companies approach by Consumer, nine were unattached to the national body and would have more of the individual approach to financial planning.
"In looking at the full report, I think the expectations of the report content from advisers, as the panel wanted, was too high.
"Information on fees is fine but reporting systems and ongoing review actions - crystal-ball gazing - seem a little too optimistic."
Most of that would happen when the client received the plan and came back with questions for clarification, Mr Smith said.
It was impossible under legislation and IFA rules to meet the required disclosure content on two pages.
"The main thing I get from this survey is that it is too general to be much of a guide.
"What it does tell me is that the plans from major institutions like the banks are not personalised but stick to a standard plan and `recommended list'.
"Good financial advice comes from building a relationship with your client."
