"We feel reassured that Pascoe Barton are managing our funds with utmost scrutiny and care..."

C & D


5 Questions to Ask Your Financial Adviser

Most people do not have a financial adviser. Under New Zealand law, only Authorised Financial Advisers (AFAs) or Qualifying Financial Entity Advisers (QFE Advisers) can give personalised advice on complex investment products. QFE Advisers can only advise on investment products provided by their company.

The Financial Markets Authority (FMA), as do ourselves, encourages anyone who is thinking of investing, to seek financial advice first. Unfortunately we have seen numerous cases where quality financial advice was not obtained.

Proportional Property Ownership – Buyers Beware

Over the years, property syndicates have come and gone.  It usually seems that they make reappearances when properties become difficult to sell, and when interest rates are low.  Instead of finding one well-heeled buyer (harder to find with the credit crunch), the answer is to find a number of mum and dad investors with a reasonable amount to invest, who want to earn more than bank interest rates.

Regulation is designed to Enhance Trust

We can understand some of the reasons that people have not trusted financial advisers in the past. Many people have family members who lost money in the 1987 sharemarket crash. Unfortunately those who were advising on shares in that era were basically commission agents clipping the tickets on the trades. And the brokerage rates at that time were dramatically higher than they are now. Even today, we still hear about share brokers in that era helping their mates and of course themselves, while other investors suffered.

Anti-Money Laundering

Increased emphasis is being placed on combating money laundering and countering financing of terrorism. Globally, money laundering and the funding of terrorism have a massive social impact on societies.

In New Zealand the methamphetamine (P) market is estimated at over $1.5 billion, cannabis at $500 million, and fish poaching (mainly paua and crayfish) at $50 million. That means that over $2 billion is being laundered by those responsible for the trade. Remember that payment for these “products” is predominantly by cash.

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