FMA: Regulator on the road: Competency requirements

Thursday, March 3rd 2011, 6:00AM 4 Comments

by FMA

I'm getting feedback as I travel the country that many advisers are waiting to lodge their AFA application until they’ve completed their competency assessment. But you don’t need to wait. By lodging your application as soon as you can (remember the 31 March deadline), Commission staff can start processing it in parallel to your remaining studies - and so save time. Also, with just four months to go until 1 July I'm getting a bit concerned by the number of enquiries we're still getting about alternative qualifications. For New Zealand advisers, I'm afraid the time for this type of uncertainty has passed. The Code Committee consulted extensively last year and received many submissions on alternative competence pathways. It would therefore be unlikely that a current New Zealand qualification or designation wasn't considered during this process. Yes there is an exemption option via the Securities Commission but an exemption application takes both time and money and must meet the statutory criteria. It's important to manage advisers' expectations by saying that, in considering an exemption application, the Commission will not revisit decisions already made by the Code Committee or grant an exemption that conflicts with the spirit of the Code. If you need to be authorised by 1 July and you still have competency assessments to complete, my advice is to bite the bullet and book them asap. And build in time in case any re-sits are needed. Mel Hewitson

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Comments from our readers

On 3 March 2011 at 6:49 am Bazza said:

Some people have been saying the fspr.govt.nz site won't let you part upload your AFA lodgement requirements? Is this true? or is there a trick some people don't know?

On 3 March 2011 at 12:23 pm PM said:

I'm not surprised there are many questions still being asked around regulation. The rules have changed so frequently it shouldn't surprise anyone. I congratulate whoever made the decision to grant a reprieve to Canterbury Advisers to complete there requirements. The only problem I have with it is the time frame is ridiculously short. Given the stress they are under already and the continuing aftershocks they should be given at least 6 months. And while the decision makers are about it they should make that reprieve nationwide to enable Advisers throughout New Zealand to handle there own stresses and to give the Assessors time to do their job properly. Maybe this course of action will stop the 'urgent' action emails coming from the Authorities who appear to be panicking about how they will get everyone 'processed. Some common sense is required.

On 18 March 2011 at 10:57 am Curious said:

A question Mel if I may. I understand that Sec Com has taken on additional staff to process applications but to date the numbers are lower than expected. I lodged by AFA application on 25th February (with all of the requirements having been completed) With the extra staff why have I yet to hear anything from Sec Com?

On 18 March 2011 at 4:19 pm Mel Hewitson said:

It's a bit hard to answer 'Curious' without knowing your identity and therefore the particulars of your application. If everything was complete and there were no issues with your application plus all competency assessments have been completed and results sent through to us then you shouldn't be waiting much longer. All the best.

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