7 Feb 1986 Professional accountants offer further services

Professional accountants are giving much more personal finance advice now than they were five years ago, according to Lincoln College Professor of Finance and Accounting Roger Juchau.

Professor Juchau says that the fee-based growth in personal finance advice has the potential for considerable expansion.

Traditionally professional accountants have relied on taxation and estate management as major sources of fees for personal finance advice.

But now offering more investment advice in insurance, real estate, share and debt equity, and other trad-able and precious commodities opens up new fee opportunities.

Projected changes in income tax and stock exchange dealings require more personal finance advice, he says.

"Investors will increasingly seek those able to of fer high quality and unbiased advice."

Professor Juchau says that share equity advice from professional accountants was being welcomed by stock market investors.

"They want independent advice on portfolio structure and development ''

However, accountants and ·other professional finance advisers need to maintain a high level of expertise.

This is because their present clients and likely clients are now able to obtain higher quality information on how to be prudent with investments.

Professor Juchau said McGraw-Hill had recently published a book, Personal Finance in Australia, for those seeking to know how to use their money wisely.

This book spelled out universal principals on investment that would be as valuable to New Zealanders as to Australians.

"There is an excellent cover of principles of personal finance, with good sections on investing in debt and share equity, and information on major research on share-market behaviour.

Professor Juchau said there were also important guidelines on spreading investment, caution on too-frequent buying and selling and reacting to sudden price changes, and on stockbroker advice.

Further information from Professor Roger Juchau, Finance and Accounting, Lincoln College