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I’ll never forget the phone call from my father. I was standing in the foyer of a building, about to get in the lift for a meeting with a large financial planning business in Wellington.
I was in the early stages of potentially becoming a financial adviser.
My dad is a beautiful human. A swear word for him is “sh*t”. He’s old school. A hand-shaker, not a hugger. As we’ve grown older, I ignore the outstretched hand and move in for a hug. Each time I remind him that a hug is better than a handshake, and I often whisper the words, “love you dad.”
On this fateful day, I could hear the emotion in his voice. I knew immediately something was wrong. He rarely openly expresses or shows emotion.
My heart sank. My mind went straight to Mum. What’s happened? Why is Dad so upset?
As he gathered his composure, he explained the reason for the call.
Like many mum-and-dad investors, they were lured in by the promise of 9–11% guaranteed returns. The advice firm they engaged seemed legitimate - a swanky office, a well presented prospectus.
Like many others, they invested their life savings with the promise (or hope) that their retirement would be comfortable and full of adventure.
Bridgecorp collapsed in July 2007, owing $490 million to 14,500 investors, after issuing an investment prospectus in December 2006 containing statements that were later ruled false and misleading.
Bridgecorp has become a byword for the worst of the finance company sector collapses. Some 14,500 investors were owed $459 million, with recovery rates estimated at just 13 to 44 cents in the dollar.
One analyst believed $450–500 million of the company’s near $600 million book value would never be recovered.
Dad was calling to say it was all gone.
“We’ve lost everything.”
When I recently read about the FMA confirming an investigation into Chance Voight, I was stunned. Annoyed. And left wondering why this has happened again.
History should be our greatest teacher. It’s an opportunity to learn what went wrong and what needs to change, so we never repeat these mistakes.
Let me be clear: I don’t know all the facts, and I’m not making accusations. But what I do know is that I have never been associated with an organisation where clients have lost money to shams or scams.
When a supplier, provider, or organisation turns up wanting to woo us with lavish meals, trips away, and a prospectus that claims guaranteed returns, they are quickly shown the door.
My mantra for joining financial services was simple:
Always treat people the way I would want my own mother and father treated.
If someone comes to invest later in life, there needs to be transparency and an honest conversation. If they’ve left it too late, then we need to say that, and caution them against risks they shouldn’t be taking.
That means investing in a well-diversified, global portfolio. It means insulating people from severe market corrections. It means structuring investments that genuinely match their tolerance for risk and their timeframe.
It is not my money.
It is my client’s money.
And I will never intentionally put someone else’s money at risk.
Looking back — and looking at recent events — there are some warning signs that should always prompt caution, especially when older or more vulnerable people are involved:
• Promises of "guaranteed" or unusually high returns
• Pressure to act quickly or fear of “missing out”
• Complex products that aren’t clearly explained
• Flashy presentations or lifestyles used to build credibility
• Resistance to independent advice or second opinions
If something sounds too good to be true, it probably is.
If you have concerns about a parent’s investments, or someone you care about who may be vulnerable, it’s worth checking in. These conversations don’t need to be confrontational. Sometimes they’re just about pausing, asking the right questions, and making sure an independent adviser has reviewed the situation. A quiet sense‑check can go a long way in helping people understand what they’re really being offered.
The people I choose to associate with in this industry share the same values. We are here to do the best for our clients, not ourselves.
And that matters, because the cost of getting this wrong isn’t numbers on a page.
It’s people. Families. Futures.
My heart goes out to every investor impacted.
Dean.
Hi everyone! My name is Dean, and I am Financial Adviser and coach. I work with people to help them to achieve their financial goals and assist them to make smarter financial decisions. Drop me a line for a chat and to work through your goals. I work with you to become financially fit and together we create a game plan for your financial future. D.
Disclaimer: Dean Blair (FSP87402) is a Financial Adviser with Velocity Financial (FSP95466). No financial decision should be taken based on the information in this blog alone. Please see our disclosure statement on our website.
Always get professional advice
The information shared in this post is meant to be general guide to support you on your journey. When making important decisions about your finances, we encourage you to seek independent financial advice first, tailored to your unique situation. As well as talking with a financial adviser, make sure you talk to your lawyer and accountant too – together they'll help you find the best solution for your specific situation. Our knowledgeable financial advisers are here to help. Check out our website for the details about our financial advisory services in our disclosures:
https://www.velocityfinancial.co.nz/disclosure-statement.