New Law Bans Target-Based Incentives for Financial Advisers from March 31: Implications and Exceptions
Effective March 31, 2025, new regulations will ban target-based incentives for financial advisers, impacting how financial advice providers (FAPs) operate. This article explores the details of the law, who it affects, what constitutes a prohibited incentive, and the exceptions that allow certain incentives to continue. Understanding these changes is essential for compliance within the financial advice sector.
From 31 March 2025, the law will prevent financial advice providers* ("FAPs") from providing most types of target-based incentives to financial advisers, the direct managers of employed advisers, and others. In this article, I consider how this law applies to FAPs and their financial advisers. This is summary information only, does not consider all relevant law, is not legal advice, and is ...MORE»
Asset managers shy away from ESG label under TrumpTuesday, February 11th, 6:06AM
The catch-all label ESG used in proving funds’ credentials is falling further out of favour as asset managers adapt in the second Trump era. MORE» |
Struggling savers draining retirement funds to cover living costsTuesday, February 11th, 6:00AM
KiwiSaver members are repeatedly dipping into their funds to get them out of financial hardship in some cases to the extent they’re landing back at a zero balance. MORE» |
Sponsored Content
Xceda adds another string to its bow
Reserve Bank licensed deposit taker Xceda is starting to broaden out its loan products offering. MORE »
New Zealand Equity Monthly October 2024
Start of rate-cutting cycle provides promising signs for New Zealand equities MORE »
Shifting the dial on good advice
Some financial advice providers are taking an overly conservative approach to meeting their regulatory obligations, the Financial Markets Authority (FMA) says.
Some financial advice providers are taking an overly conservative approach to meeting their regulatory obligations, the Financial Markets Authority (FMA) says.
FMA chief executive Samantha Barrass says it will want to understand the reasons for this, particularly to check that business models are not being skewed by an unnecessarily cautious approach to compliance thereby creating friction and ...MORE»
Early days, but NZ Super's machine-learning fund outperformsFriday, February 7th, 9:55AM
The New Zealand Superannuation Fund’s new machine-learning portfolio of New Zealand shares has exceeded expectations and managed to outperform its internally and actively managed NZ equities portfolio. MORE» |
KiwiSaver market share leader ANZ at bottom of performance tableThursday, February 6th, 9:08AM
The latest Morningstar KiwiSaver report shows the largest provider, ANZ with $22 billion under management, continues to be outperformed by most other providers in the core diversified fund categories. MORE» |
News Bites
|
TAPping into AI
The Adviser Platform (TAP) has launched an AI-powered tool to help financial advisers save time preparing client advice. MORE»
GoodReturns TV
|
[GRTV] Stronger and more unified voice needed to force KiwiSaver changes
The Retirement Commissioner Jane Wrightson talks to Philip Macalister about changes she would like to see made to KiwiSaver. MORE»
Harbour Outlook: So much for the Christmas rally
December saw mixed market movements influenced by currency shifts, central bank actions, and economic trends, shaping the investment outlook for the months ahead. MORE»
![]() |
Sponsored by: |
|
Find out about nib's new products
nib is hitting the road with its 2025 adviser events, offering an exclusive opportunity for advisers to stay ahead of the curve with nib’s latest innovations. MORE»
TMM Online
|
10 Minute home loan approvals on the cards
One of the possibilities of open banking includes the ability for borrowers to get pre-approval for a home loan in 10 minutes and to make instant low-cost payments. MORE»
![]() |
Sponsored by: |
|
More kernels added to the cob
Digital wealth platform Kernel has nabbed senior staffers from ANZ and Fisher Funds. MORE»
![]() |
Sponsored by: |
|
KiwiSaver market share leader ANZ at bottom of performance table
The latest Morningstar KiwiSaver report shows the largest provider, ANZ with $22 billion under management, continues to be outperformed by most other providers in the core diversified fund categories. MORE»