Associations want mortgage, insurance adviser situation sorted

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Adviser associations are reasonably happy with the final draft code, though they would like some more progress on letting insurance advisers and mortgage brokers seek authorisation.

Tuesday, August 3rd 2010, 7:35AM 1 Comment

by Paul McBeth

Professional Advisers Association chief executive Edward Richards said his association was "reasonably comfortable" with the document as it was sent to Commissioner for Financial Advisers David Mayhew last week. The PAA's major concern was that the document would get too prescriptive, like the Australian regime, and Richards said he was pleased the Code Committee did not go down that route.

The lack of action from policy makers in opening up voluntary authorisation for insurance advisers and mortgage brokers only providing advice on category one products was a concern, Richards said.

"We want to make sure the government doesn't lose momentum on that front," he said.

The Institute of Financial Advisers backed up the PAA's push for some haste on voluntary authorisation, with president Nigel Tate saying the IFA wants to reinforce its support for the opt-in provision for insurance only advisers and mortgage brokers.

"We would prefer everyone to become AFAs and would like the minister to consider that possibility before the code is finalised," Tate said. "We believe it is important for all advisers to be authorised to give the public assurance of the quality of the advice they are receiving and the opt-in provision is a good way for more advisers to become authorised."

PAA's Richards paid tribute to committee chair Ross Butler in what has been a very difficult job, balancing the interests of consumers and industry.

"Ross Butler consulted consumers and industry groups very well - advisers are all in favour of getting consumers feedback, since they know them the best," he said.

Paul is a staff writer for Good Returns based in Wellington.

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