Tim Noonan is the managing director of capital markets insights for Russell Investments’ private client services business. He was in New Zealand recently to talk about the latest trends in financial advice.

Noonan says there is a "crisis" brewing in retirement savings and "we have to do something."

There has been much focus on regulators and their various reports. These include the Royal Commission in Australia and the conduct reviews carried out in New Zealand by the Reserve Bank and Financial Markets Authority.

Noonan says they recognise the problem and are trying to "reduce the amount of bad advice."

A key point he makes is there needs to be a shift from "value capture to value creation".

It may sound wishy washy but with value capture it's all about products, with hedge funds being the worst example. Value creation is all about working with clients to meet their defined goals.

He says all great change comes through partnerships and that is what advisers need to have with their clients.

The future, he says, is progressively less focussed on product and more focussed on client outcomes.

Noonan also makes interesting comments around how advisers talk to clients. Research shows that advisers need to do less talking and more listening to what clients want.

He says advisers need to "alter their discovery conversations" and do more listening.

Watch the full interview here