Industry groups call for recognition

Nigel Tate, president of the Institute of Financial Advisers, says the push for official recognition of professional bodies is likely to be one of the focuses of the financial sector this year.

“There’ll be an ongoing discussion about recognition of professional bodies. It’s a key element for the government to consider,” he says.

“There are too many practitioners who are not members of any industry body.”

The minimum standards for authorised financial advisers are enforced by the Financial Markets Authority, a government regulator.

Tate says a number of New Zealand’s peers have allowed professional bodies to regulate advisers’ professional conduct.

“Professional bodies are already recognised in Australia, the UK and the United States as well. If we are looking to close that regulatory gap that’s an area to be looked at.

“Most professional bodies have already been doing the fundamental stuff right. Now it’s about the government recognising that as they’ve done with QFEs, which have a focus on systems and processes. I would like to see something done in that area.”

Tate says recognising professional body would be an important step towards financial planning becoming a profession.

“At the moment we have regulatory standards. We need professional standards set by the profession. They have that for lawyers, doctors and accountants.”

And he says there doesn’t need to be only one professional body in the industry, provided there was one consistent industry standard to uphold.

“If there are 10 professional bodies that meet a standard, there’s no reason they can’t have 10 as long as they remain viable.”

Comments from our readers

On 14 January 2014 at 9:05 am Brent Sheather said:

Professional bodies regulating advisors? Ridiculous. Talk about putting the foxes in charge of the hen house.

On 14 January 2014 at 12:29 pm Robert said:

If you can't offer value to your members, make the government force them the join you.

Stay classy IFA

On 14 January 2014 at 10:48 pm Amused said:

Professional bodies like the IFA should be focusing their energy and time on demonstrating "added valued" to advisers and their businesses instead of trying to lobby the Government to make membership of their organisation compulsory. Perhaps the threat of no longer been able to offer CPD to members has forced them to take this approach? Regardless it’s not a great look for them with advisers.

Industry groups call for recognition

Professional bodies in the financial planning industry should be recognised by law, the head of one of them says.

Tuesday, January 14th 2014, 6:00AM 3 Comments

Comments from our readers

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