Insurance groups opt for AFA standards

At least two risk advisory networks have committed to helping their members achieve authorised financial adviser (AFA) status in time for regulation.

Thursday, December 17th 2009, 10:21PM 2 Comments

by David Chaplin

Share and Newpark, who collectively speak for almost 300 advisers, have initiated programs to lift members' competency levels beyond the bare minimum expected with regulation.

Under the Financial Advisers Act, practitioners who deal in level two products only - which potentially could include most risk advisers - would not have to become AFAs.

However, Bronwyn Shanks, Share general manager, said the group would ensure all of its 70 advisers reach the higher AFA standards.

"We're positioning the brand above that for registered [level two only] advisers," Shanks said.

Darren Gannon, head of Newpark Financial Services, said the network of over 200 advisers would also push its advisers to meet the AFA level in time for regulation.

Newpark has engaged a tutor to assist advisers with the AFA educational requirements.

According to Shanks, achieving AFA standards was just one plank in Share's extensive program to fully prepare its advisers for regulation.  

As well as hiring Australian consultant Sue Laing of The Risk Store, the Share project will utilise Strategi and implement a customised Xplan system into every adviser business in the group.

Shanks said the program would be "prescriptive" with the aim of creating a uniform process across the group.

"Regulation is not just about the advice process. It touches every element of the business including storage of confidential client information, verifying clients' identities, money handling procedures, claims management, disputes resolution, technology - many advisers are underestimating the degree of change required to meet the new standards."

The Share regulation program is headed by project manager Geer Iseke.

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