You are using an older browser version. Please use a supported version for the best MSN experience.

NZers' confidence in financial markets up

NZN 28/05/2017 Paul McBeth

Almost two-thirds of New Zealanders have confidence in the country's capital markets, up from just over half last year, a Financial Markets Authority survey shows.

Five per cent of 1000 people surveyed by Colmar Brunton are very confident in financial markets and a further 60 per cent are fairly confident, up from 3 per cent and 53 per cent a year earlier, the survey shows.

That rises to a combined 69 per cent for the 891 people identifying as investors, up from 59 per cent in 2016.

Non-investors were still wary of markets, with a net 40 per cent confident in them, down from 43 per cent a year earlier, although fewer people identified as non-investors.

"All these scores show we are starting to see a shift in the public's historic mistrust about markets and financial services," FMA chief executive Rob Everett said.

"Prior to 2015 confidence built quite steadily and then, with market ructions last year, it dipped."

The FMA was set up as a super regulator in 2012 as part of a securities law overhaul that was designed to reinvigorate investor faith in markets after the collapse of the mezzanine finance sector through the 2000s and the lingering distaste for stocks after the 1987 crash.

"We hope to see a continuing trend of investors retaining confidence in the conduct within and integrity of the market, even if the performance of their investments goes up and down," Mr Everett said.

Commerce and Consumer Affairs Minister Jacqui Dean welcomed the survey results, which followesignificant reforms of investment regulations.

Law changes last year were aimed at creating confident and informed investors and efficient and transparent financial markets, she said.

"Building the financial capability of New Zealanders increases investment and grows the economy."

image beaconimage beaconimage beacon