Who are you and what do you do?

I am Brent Sheather and, together with Graeme Tee and Alan Schofield, manage the retirement savings of mums and dads throughout New Zealand. We don’t do insurance or KiwiSaver or holistic healing.

How did you get into the industry?

I was fortunate enough to work with Neil Craig in the Tasman Pulp & Paper Economics Department, working for John McDonald. Neil had a company car and we used to drive to work together from Ohope to Kawerau. In early 1984, Neil said “why don’t we try and buy the local Whakatane stockbroker?”

If there is one thing you would like to change about the financial advice industry, what would it be?

There is so much that needs to be changed its hard to know where to start but I guess having a regulatory institution that knows what putting clients’ interests first looks like, and is permitted by government to actually do that, would be a great starting point. Also, I think the FMA should publicly name and shame fund managers and financial advisers who say things that are demonstrably untrue. Just this week, one fund manager used an 8% post-tax, post-fee growth rate in a KiwiSaver example when a realistic figure is half that. Stocks and public floggings would raise standards immediately.

What’s the best advice you have ever received?

My mother once told me that I am going to be in trouble if I ever have to get a real job, hence I have a reasonable bond component in my portfolio.

What could financial advisers learn from other industries?

Most doctors actually put clients’ interests first, so I guess that could be a good one. Imagine a doctor saying, "we don’t have an arrangement with Glaxo, so I am going to put you onto this other drug that isn’t the best one for you."

What do you think the FMA has done well? What could it do better?

The FMA has driven the bad guys out of town but unfortunately, 99% of the damage to the wealth of retail investors is done by the good guys and that’s who they need to go after. Good luck with that idea. There are some good people on the FMA Board but they could use a few more and get rid of those people who are obviously conflicted and may be holding back proper regulation. I also think the MBIE is chronically under-resourced and they bear a lot of responsibility for our dysfunctional industry.

What have been the benefits of regulation?

Honestly, I can’t think of any – it hasn’t improved our solutions for clients at all, except to waste a huge amount of time, and it completely puts me off taking new clients. I had to do virtually all of the stupid courses to become an AFA, and the biggest problem I had was determining which wrong answer the silly people in charge thought was the right answer. My view is that regulation has been completely captured by banks and, with any luck, there will be a day of reckoning.

You're a committed commentator on the industry - what compels you to take such an interest?

The pursuit of truth – seeing people who should know better consistently telling lies so as to validate their own business model, basically doing the FMA and the CFFC’s job.

Do you ever get feedback from the public about your online musings?

Over the years we have had lots and that is probably why most of our business comes from Auckland.

Are you a KiwiSaver member?

No way – I don’t think it makes any sense whatsoever for a self-employed individual who knows what doing the right thing looks like. KiwiSaver fees are huge and despite the comments from the FMA, the CFFC and various other nitwits, total fees are not disclosed. I also think the end game will be compulsory annuitisation. The big reason I am not in there is because it makes no sense financially.

If so, what’s your investment strategy?

My investment strategy with my own portfolio is balanced with a tilt towards growth. I have sufficient bonds such that if there were a depression, I would not have to get a real job.

Outside of work what do you do?

Surfing, swimming, walking our two dogs and drinking good coffee.

What would you say if one of your kids told you they wanted to be a financial adviser?

I told you so.

If you weren’t in this job what would you be doing?

Retired and surfing in the Gold Coast and Gisborne.