When I was a teenager, I was facing the dilemma of which career I would pursue upon leaving school.

I still believe this is a difficult decision for teenagers. When they are about 15 years old, they must decide which subjects to continue for their last years at school. The subjects they choose should be based around their strengths and interests, but also potential career paths and university studies. Choosing the wrong courses could mean an extra year at uni to catch up.

Think back to when you were 15, or maybe remember what your kids were like at that age. Some people already had their dreams laid out; I remember me and my mates having no clue. I did take maths, stats and chemistry because that was what I was good at. At the same time, my ideal job title was still "rockstar" and anything else was just a backup plan.

During this time, my parents suggested I speak with my friend's father. He was working in the engineering department at AUT back then. My parents thought engineering would suit me, so they had him round for dinner.

I remember what he told me now because of how he described his profession, as a problem-solver. He told me a story about a client approaching a product designer, asking for a steel trap to be produced. They described a small box, with a spring trigger linked to a heavy bar. When the spring was triggered, the bar would snap down on the bottom of the trap. The product designer took down the dimensions and promised to produce the trap.

He then described what would happen if the client approached an engineer instead. The client begins explaining what he wants, when the engineer interrupts: "Why do you need this trap?" The client explains his problem with rats in their factory, their dissatisfaction with previous mouse traps and their need for something sturdier. The engineer thinks for some time before telling them "I have considered your problem, and I believe you need a cat".

Why am I sharing this story now? I remembered it after reading an article, KiwiSaver's Achilles' Heel by Scott Alman. He discusses the impact of the Haynes Royal Commission in Australia and the following exodus of big players from financial advice. The commission shone a light on the conflicts of interests, cookie-cutter services and poor results for clients.

All this reminded me of the story above. With a focus on only products, clients needs are not fully understood. The results are inefficient, unsuitable, and often expensive solutions offered to clients. While the factory owner may not need an expensive trap to solve his rat problem, the products offered by banks may not be the best solution for every client walking through the door.

I recommend giving Scott Alman's article a read, as he describes the changes in the Australian advice sector and the parallels with New Zealand's. He also discusses vertical integration, where an institution offers products and advice at the same time.

The idea of vertical integration makes sense for a bank. If you can provide both products and advice to clients, you can get a bigger share of their wallets. The trouble comes from the lack of independence and conflicts of interest. Clearly the advisers would recommend the products of their employers even if they may not be the most suitable for clients.

Many of the advisers in NZ are known as QFE advisers. This allows employees, without becoming financial advisers, to offer financial advice around only the products of their employers.

We, and many others in the industry, have argued against this title. Maybe more appropriate would be "agent" or "salesperson". This makes clear the role these employees play. With the new regime coming in 2021, this role will be replaced by "nominated representatives" instead following push-back from the big end of town.

Scott Alman mentions how this is a problem with KiwiSaver. Can you remember a time where you weren't ask to switch KiwiSaver when visiting the bank? But the same is true in the overall investment space.

We believe independent advice is crucial to good client outcomes. Like with the engineer story above, clients need problem-solvers, not product providers. We believe keeping advice and products separate is the only way to ensure clients get the best results.