Financial adviser course announced

AUCKLAND: A shortage of new financial advisers coming into the industry combined with looming retirements has prompted a life insurer to launch its own training course.

Fidelity Life, which is 49% owned by the New Zealand Superannuation Fund, will run the sixmonth parttime course with two 20person intakes in February and July next year.

As well as including the minimum level 5 qualification to be a financial adviser and the Financial Advice New Zealand (Fanz) ethics course, it will offer eight extra modules to support those who want to enter the industry.

Fidelity Life chief sales and service officer Bronwyn Kirwan said the move was driven by dual concerns about the need for the public to get financial advice and the sharp contraction in the number of advisers.

‘‘The first challenge lies with the New Zealand consumer and some of their lack of confidence and difficulty in navigating the financial service industry, particularly life insurance.’’

At the same time, people felt anxious and uncomfortable when speaking directly to insurance providers.

‘‘That is where . . . [a] financial adviser can be very supportive in raising those confidence levels, helping customers select the right products and services for their particular needs.’’

On the other side of the issue was the lack of new advisers coming into the industry.

Industry research from the Financial Services Council forecast up to 50% of New Zealand’s 10,000 advisers could leave the industry in the next three years, mainly due to retirement.

The number of new advisers joining the industry had slowed to a trickle, Ms Kirwan said.

She put that down to the industry getting a bad rap in recent years.

‘‘It is partly an industry issue — there are some challenges from a reputation and trust perspective. So when one thinks about being a participant in an industry that has those hallmarks of distrust and complexity that obviously is less desirable for someone wanting to pursue a profession.’’

It was also hard to build a business when there was a lot of change and uncertainty.

‘‘We haven’t done a fantastic job of marketing the amazing work that financial advisers do and how incredibly rewarding a profession it can be.’’

If there were not enough financial advisers, New Zealand risked having an ‘‘advice gap’’.

At present, less than 20% of the eligible population was accessing advice.

She pointed to research from the Financial Markets Authority and Fanz which showed those who received professional financial advice often felt more confident and had better longterm financial outcomes.

The course would aim to teach the softer side of being an adviser, such as building rapport and trust with clients.

It was hoped a broad range of people would be interested. —