In his maiden speech to the industry as minister for commerce and consumer affairs, David Clark called for partnership between government and the financial services on the eve of unprecedented regulatory shakeup.

Borrowing some well-rinsed rhetoric from his boss, Clark said, “The team of five million is the cliche, but people really stepped up and got involved and that is how we got to be where we are.”

Clark stated that “New Zealanders really feel a sense of ownership in helping the economy remain strong. I believe this means we can take things to a whole new level when building trust in the sector and getting more people taking advice and getting better financial outcomes for more New Zealanders.”

FSC ceo Richard Klipin, who moderated the conversation with Clark, asked the minister if he believes that New Zealand trust in advice is as strong as recent surveys from both the FSC and Financial Advice NZ have shown.

Clark said that while the lived financial experience differs across the country, “ what we do know is that when people get advice they do get better outcomes. It’s about gently encouraging people in that direction.”

The gentle encouragement that Clark sees benefiting the industry and the New Zealand public both is “getting those stories out there of how people’s lives are changed through getting good advice.”

The damaging impact of what happens when bad stories get out there in the mainstream media is all to clear for Clark, who as the MP for Dunedin saw the devastation of fraudster ex-financial adviser Barry Kloogh first hand.

“Cases like that highlight the importance of getting this right. People need to know that there is a regime they can trust. Because unfortunately when there is one bad story, lots of people hear it. When positive stories get out there I hope we can get more New Zealanders getting the advice that will make them better off.”

In terms of what is at the forefront of New Zealanders thinking in terms of their finance, Clark says that KiwiSaver is vital for getting that conversation started. “I think that KiwiSaver has an important role to play, who those default providers are is incredibly important. The advice products that financial services offer all contribute to that picture.”

On the topic of default providers, Clark stated that “the default provider funds will be announced in May and they will be in place by December.”

Clark said that the government’s role in promoting the benefit of financial advice is “a partnership” with the industry.

“It has to be something that we work on together. Government has a role in creating a regime that builds trust. However the industry itself and the industry bodies in particular have a role in building confidence."

Clark concluded by saying that “I think we will know that we have a sector that is really humming if we are seeing savings grow. If we see people investing in products, if they are making wise decisions about their financial futures and they are confident and resilient.”