Sovereign puts standards on advisers

Sovereign says it aims to create an impact in the financial advisor market with the relaunch the Colonial franchise channel under the new brand name allfinanz.

Talks between the franchise channel and Sovereign resulted in an agreement to relaunch the brand into the market with a view to create new standards. The allfinanz brand will impact largely on the financial advisor market as it sets a high level of standards on all aspects of operations.

Sovereign director of distribution David Haak says the group will be positioning itself in case the Government introduces stricter regulatory controls on advisers.

"Current trends in Australia and the UK reflect that financial planners are industry regulated much more strictly than in New Zealand.

"In keeping with these trends, we believe that there is a strong possibility that formal industry regulations will come into being in New Zealand in the future."

He says the allfinanz franchise will have a set of agreed standards for financial advisers, and the franchise will be focused on providing quality advice.

"To ensure these standards are upheld, we are appointing a standards manager who will be available to work in each practice at least once a year. The allfinanz standards manager will help to enhance operating systems and performances, working in much the same way as an auditor would with a public company.

"If such regulation does come into being, Sovereign will be well prepared. We've taken the voluntary step to go down this track by proactively formalising our own high standards."

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