Separate adviser authorisation opposed
Creating separate categories and qualification requirements for Authorised Financial Advisers depending on their specialisation would be a backward step, industry representatives say.
Thursday, February 21st 2013, 6:00AM 5 Comments
by Niko Kloeten
A recent survey showed support for registered financial advisers having to be qualified. That prompted suggestions that there should be different qualifications for different types of advice, such as mortgage, investment and insurance.
But Professional Advisers Association chairman Peter Leitch said that would not be helpful.
He said the most important thing was the skill, knowledge and competence of individual advisers.
“I don’t think it’s relevant whether they are an AFA or an RFA as long as they are skilled in what they are advising on.”
Institute of Financial Adivsers president Nigel Tate also did not support the idea.
“I don’t believe it’s good for consumers because there’s so much inter-relationship between mortgage advice, risk advice and financial planning advice,” he said.
“If that process was initiated I would be an authorised insurance adviser, an authorised mortgage adviser and an authorised investment adviser.”
But Tate said it was likely that at some point all advisers would have to meet some sort of minimum qualification to operate in the industry.
“It will mean there’s no difference in having the two different brands; whether they are called AFAs or RFAs is irrelevant in my view.”
Niko Kloeten can be contacted at firstname.lastname@example.org
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