Insurance groups opt for AFA standards

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."

Comments from our readers

On 18 December 2009 at 8:32 am Ron Fflood said:

I am astonished to read that there are still those out there with their heads deeply buried in the sand. The notion that those risk advisers only selling category 2 products will not need to be authorised no longer stands.If you are dealing with client's and just 'taking orders' with no fact find or needs analysis and giving no advice, then yes you may not need to be authorised.
Such a scenario may be true of a bank teller, but I find it hard to believe any reputable risk writter would fit into that category.
The latest information we have is, if you do a fact find and needs analysis, you will need to be authorised irrespective of what category product you promote.

On 18 December 2009 at 12:02 pm Marcus said:

You're right Ron. As a specialist risk adviser, I cannot operate without deep and thorough analysis. However, I don't see why I should have to show competency in fields in which I don't operate. The bureaucrats deciding my fate can't tell the difference, it seems.

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

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