Investments
Sec Comm thoughts on setting adviser competence standards
Tuesday 21st of April 2009
STAFF PAPER ON AUTHORISED FINANCIAL ADVISER COMPETENCE
20 April 2009
Introduction
- The purpose of this paper is to outline current developments and possible approaches in relation to standards of competence for authorised financial advisers ("AFAs") under the Financial Advisers Act 2008 ("the Act"). It has been prepared by Securities Commission staff to inform not only the Commission itself (i.e. the Commission in its capacity as a statutory decision maker) and the Commissioner for Financial Advisers, but also the Code Committee, financial advisers and their employers, consumers, education providers and other interested parties. In turn we seek comments to help provide a more complete picture of current developments and possible approaches.
- To the extent that views are expressed in this paper they represent the preliminary thinking of Commission staff.
- Much of this paper is descriptive - setting the scene for a discussion. First we give an outline of how the Act relates to the competence of AFAs. Within that outline we draw attention to the various distinct roles of the Commission, the Commissioner, and the Code Committee. We then go on to outline the National Qualifications Framework and the development of unit standards of competence for financial advisers. The last section of this paper is the beginning of the substantive discussion on a competence framework for AFAs under the Act.
- The intention is for this paper to lay the groundwork for consultation processes and decision making in relation to competence matters. In particular, we are keen to ensure that, ahead of the Code Committee's consultation process on the competence standards to be specified in the Code, there is a good level of understanding of the National Qualifications Framework in order that feedback can be provided to the Code Committee for early consideration.
- We are keen to fully understand and assess the financial and other implications of the possible approaches set out in this paper. We ask you to comment on costs, benefits and any other impacts (for example the effects on competition or on trans-Tasman business efficiency). We are seeking both quantitative and qualitative information. We encourage you to describe any alternative approach you think would achieve the Act's objectives. We are keen to hear from you on any other issues you consider important.
- Submissions should be sent to the Commission by 5.30pm on 29 May 2009.
Email:
faa.consultation@seccom.govt.nz
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