The major change which most directly impacts our needs-based financial advisers is the requirement that all financial advisers will be required to be members of an approved co-regulatory professional association. Since regulation of advisers was suggested, IFA has consistently advocated all types of financial adviser being covered and that the same rules should apply to all advisers. We are pleased to have been able to be part of what has been a very positive consultative process by the Ministry of Economic Development and the minister, Lianne Dalziel, and to have our key points accepted.
The change will mean that all types of advisers including lending advisers and real estate agents who advise on investment property will be subject to consistent requirements for competency, conduct and disclosure. This will benefit consumers as it will raise overall industry standards.
For IFA itself and its nearly 1,500 members, regulation will mean minimal change as we have spent the past few years making ourselves into a fully professional body.
There will be challenges for those who are not currently members of a professional association. This is the majority of financial advisers. IFA will work to assist non-members meet the new requirements. We already have provision for acknowledging existing experience and will develop ways for recognition of prior skills and learning. Government has allowed plenty of time for transition, so this approach can be implemented.
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