KEY POINTS:
An action group has been launched to protect "mum and dad" investors in the wake of the collapse of a series of financial companies costing investors thousands of dollars.
Exposing Unacceptable Financial Advice (EUFA ) has been established to gain what is being described as "people power".
EUFA Coordinator Suzanne Edmonds said she wanted "mum and dad" investors , who trusted their advisers, to come forward to EUFA, to register their problems within the industry.
"It is far wider spread than New Zealanders realise. We want people who are victims of unacceptable professional advice to join forces and pressure this industry into taking responsibility for the suffering the financial losses are causing."
The group has been established after the collapse of a seventh finance company in 16 months yesterday.
Five Star Consumer Finance became the third finance company in just over a week to be put into receivership.
Five Star's announcement came a day after NZAX-listed PropertyFinance was put into receivership owing debenture holders more than $80 million.
Ms Edmonds said peoples live had been devastated by the crisis-riden finance investment sector and people were embarrassed.
"EUFA is formed following investigations into cases that are hidden by the industry.
"Good everyday New Zealanders are not only losing there hard earned funds in the big financial collapses but at the hands of their trusted financial adviser ."
Some advisers were putting their commission ahead of sound advice, she said.
- NZPA
