Newstalk ZB
Warning over celebrity finance endorsements
Friday July 25, 07:29 AM
There is a warning to Mum and Dad investors to do their homework on finance companies, and not be blinded by celebrity endorsements.
Former TV One newsreader Richard Long was the voice of Hanover Finance, which this week froze $554 million worth of investor funds and started work on a restructuring plan. All Black great Colin Meads endorsed Provincial Finance before it went into receivership in 2006.
Professor Larry Rose from Massey University's College of Business says it is understandable that some investors feel betrayed, because these people are New Zealand icons. But he says their endorsement does not mean they have any expertise in finance and the onus is on investors to make sure they get expert advice.
Professor Rose says it is one thing to be attracted to a product or service by a celebrity endorsement, but it is quite another to hand your money over on the basis of that endorsement. He says undoubtedly those who endorse companies that fail will feel bad about it, but it is no different to endorsing any other product.
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