Wealth management now wags the stock-broking dog
The capital markets review's report mentions the issue: "Each of the five primary retail NZX firms has moved from broking models to wealth management models with a concentration on asset allocation and portfolio construction," it says.
"This has been beneficial for those who get this advice and service but has been at the cost of smaller-cap companies and those not covered by research," it says.
"Direct individual participation in the market has declined with only a few participants serving the smaller direct investor."
The numbers are startling. NZX's website still lists JBWere as a broker but New Zealand equities manager Rickey Ward says his firm does no broking these days and hasn't for more than a decade.
Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
You will also be able to comment on articles on Good Returns.
![[The Wrap] What the heck is happening at the FMA?](https://goodreturns.publit.io/file/c_fill,w_300,h_200/a6c3bc06-6401-44de-96e2-286c090e132d.jpg)