Financial Advisers Are Doing a ‘Great Job’ Under the Covid Cloud


Financial advisers are doing a “great job” of navigating the ever-changing economic environment as they operate under the cloud of Covid-19, says Katrina Shanks, CEO of Financial Advice NZ.

“With factors seemingly changing day-to-day, making predictions has proven particularly difficult,” says Shanks.

“Nonetheless, financial advisers keep doing a great job at understanding how risks have changed, making clients aware of those risks, and addressing their most pressing concerns.”

Referring to a recent series of webinars hosted by her organization, Shanks says while the new regulatory regime has dominated the focus of the advice sector, there have been many other significant changes in New Zealand affecting housing, savings, and inflation.

For example, in one webinar economist Cameron Bagrie discussed the challenges and opportunities that are shaping the country, saying globalization is hitting reverse in favour of a more local focus.

…financial advisers keep doing a great job at understanding how risks have changed…

Shanks says: “We live in a time where digital technology enables us to transcend geographic distance – but when it comes to moving people and goods, the distance has never been more apparent.”

Katrina Shanks, CEO, Financial Advice NZ (2020)
Katrina Shanks, CEO, Financial Advice NZ says advisers are doing a good job working under the impact of Covid-19.

This, says Shanks, is something financial advisers should consider when assessing their clients’ business and personal risk.

“However, there’s no denying that major challenges – such as inflation, household debt, and housing affordability – remain ahead,” she says.

According to Bagrie, there’s an increasing risk of higher inflation and living costs, which may impact on New Zealanders’ savings in the coming years.

On the housing front, Shanks says some economists expect returning Loan to Value Ratios (LVRs) will result in a 5-to-10% price drop in house prices in the next few months. However, Shanks is not holding her breath waiting for a drop in real estate values.

For a list of upcoming Bring in the Experts webinars visit Financial Advice NZ.