SIFA softens stand on independence
Wednesday, September 1st 1999, 12:00AM
Under the association's rules advisers have to be independent of fund management and life offices, and they have to be able to offer clients a range of products from different providers.
SIFA members are not allowed to have production targets or tied agency arrangements.
Chairman Evan Still says the association intends to "slightly soften" its position on independence for two reasons.
One is the Advertising Standards Complaints Board ruling on independence a couple of years ago, the other relates to changes that are happening in the market place.
Under the board's ruling advisers cannot call themselves independent if they are paid trails or commissions by a product provider.
The other development which has prompted SIFA members to revisit the independence issue relates to developments in the master trust area. Some providers, such as Armstrong Jones, specify that advisers who use its Private Portfolio Service master trust have to put a certain percentage of money into Armstrong Jones funds.
Still says SIFA members discussed the issue at their conference in Taupo last weekend and decided that some changes should be made to the constitution to allow advisers in these situations to be members.
Although advisers in the latter situation may not be considered independent, they offer their clients a wide range of products.
He says the issue will be voted on at the association's meeting early next year.
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