About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Friday, November 22nd, 5:30PM
rss
Latest Headlines

News Round Up

Cracking the code, the meaning of independence and while we're at it,  the meaning of advice

Tuesday, April 6th 2010, 6:25AM 2 Comments

Perusing the draft Code of Professional Conduct for Authorised Financial Advisers one marvels that the industry has survived so long without such a cornerstone document.
Whilst one might think the majority of the standards in the code would be implicit in any relationship between a financial adviser and their client the absence of having it spelt out in black and white has been a serious flaw.
Placing clients interests first is Code Standard 1 and must be thought to be self-explanatory as there is little in the way of additional detail relating to this.
Use of the term "independent" is the focus of Code Standard 3 and many advisers currently promoting themselves as independent may find themselves on the wrong side of the examples given.

Definitions of category 1 and category 2 products are spelt out in Section H. If this leaves you with a few question marks then the guidance note issued by the Securities Commission last week is sure to add a few more. You can read that story here.

Disciplinary measures for breaches of the code include cancellation of the AFA's authorisation, debarring for a specified period or payment of a fine. Interestingly no range for fines is spelt out.

Disgruntled clients will also be able to lay  complaints directly with the Securities Commission if their adviser breaches the code.

The draft code can be downloaded here:
Advisers have five weeks until 7 May to make submissions which can be emailed to consultation@financialadvisercode.govt.nz

The April issue of ASSET magazine has a special feature on the education requirements of the new code. If you are not currently a subscriber we are offering a free copy for a limited time. Simply complete this form before 9 April. You can start earning your unstructured CPT hours as you read!

 

« KiwiSaver measurement standards put out to tenderSovereign takes regulation bull by the horns »

Special Offers

Comments from our readers

On 6 April 2010 at 11:56 am Mac said:
One of the exemptions under Code Standard 3 with reference to the definition of independent advisers:
(f) those that are received by the AFA in the form of salary or wages as an employeee that are determined in whole or in any part by reference to volume or other targets."
Nice addition by the institutions, but could anyone provide an example of an AFA on a wage not having any financial or non-financial targets?
On 6 April 2010 at 5:26 pm Ron Flood said:
If a person is employed by an institution and subject to restrictions on the products or services they can advise on, the can not be deemed to be independent irresepective of how they are paid.
Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • [The Wrap] Into the unknown
    “Can I add to your list of unknowns, That is the issue of whether a financial adviser will be allowed to provide advice on...”
    13 hours ago by Murray Weatherston
  • [The Wrap] Into the unknown
    “As a Director of Newpark, I am appalled by this comment above "It is good to get rid of overrides as the money in the past...”
    13 hours ago by Murray Weatherston
  • [The Wrap] Into the unknown
    “Dealergroup fully paid for my level5, professional development days, free crm and advice process, bdm support and just attended...”
    13 hours ago by D.G
  • When is a client really a client?
    “while many interesting points are made, I feel that Murray's earlier comment is closest to the mark. However I believe it...”
    15 hours ago by Tony Vidler
  • Life stages research shows big differences in outcomes
    “"Savers who chose NZ Funds, Fisher Funds or SuperLife achieved a higher level of expected wealth at retirement after fees...”
    2 days ago by Gordon Gecko
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.05 3.95 4.49
ANZ Special - 3.55 3.45 3.99
ASB Bank 5.20 ▼3.89 ▲4.05 4.39
ASB Bank Special - ▼3.39 ▲3.55 3.89
BNZ - Classic - 3.55 3.45 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.35 3.35 3.35
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank 5.80 4.14 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.39 3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.55 3.39 3.89
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.55 3.45 3.99
Median 5.34 4.02 4.09 4.39

Last updated: 22 November 2019 4:35pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com