tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, December 14th, 6:08PM

News

rss
Latest Headlines

Draft Code consultation meetings in full swing

Meetings to follow up the release of the Draft Code of Professional Conduct are happening around the country. Good Returns attended the meeting in Tauranga.

Wednesday, April 14th 2010, 6:05AM

by Jenha White

One possibility raised here was that there may be a bit more breathing space given to achieve compliance with the education standards.  If the education system for financial advisers cannot cope with training and assessment requirements before December then some parts of the Code may be delayed until next year.

Advisers wanting to become Authorised Financial Advisers (AFA's) under the Financial Advisers Act 2008 have to either graduate with a National Certificate in Financial Services (Financial Advice) (Level 5) or achieve the equivalent educational outcome by December.

At the consultation meeting in Tauranga, attended by around 25 advisers, Code Committee chairman Ross Butler said the Committee will have to wait and see whether that is a feasible target or not.

"We'll have a good indication by September/October and if the system cannot cope with training and assessment requirements, then most of the code will be activated but it might say those parts that can't be coped with we'll turn on sometime next year".

Butler also clarified who the Code applies to.

"People have been asking for a while now, why we're just picking on a limited group of stockbrokers and advisers when there are a whole lot of other professionals who are masquerading as advisers and being able to walk away under some other title."

He says this is not the case. The Code applies to a wide range of professions providing investment advice from real estate agents to accountants, lawyers and even funeral directors.

"In this regime, you can't be half pregnant."

He also discussed regulation across the Tasman where detailed provisions haven't worked.

"Giving the client a truckload of documents about disclosure and prospectuses doesn't work, so Australia's heading down the track we're going in.

"They've picked up our level 5 certificate already and converted it and they're going down the same track with individual registrations as opposed to the structure they have at the moment."

 He says there's a lot of commonality with Australia and the only area where Australia may speed things up is in the banning of commissions on investment products and financial planning, which is up to a parliamentary inquiry with the Ripoll report at the moment.

Also under discussion was the restriction on advisers borrowing from or lending to clients.

"Now you might be asking why we went down that track?" says Butler.

"What we've seen in a couple of these cases with finance companies, involving accountants, lawyers and financial advisers, is underlying some of these activities there have been other bad business transactions as well, which has been messy."

Audience members also asked about independence, with advisers suggesting they would use alternative words to describe their businesses, such as unbiased.

Butler made it clear that synonyms won't work and that the bar has been raised substantially around independence.

"The reality is many advisers will not be able to call themselves independent under the new Code.

 

Jenha is a TPL staff reporter. jenha@tarawera.co.nz

Tags: regulation

« Adviser registration pushed out to July Sovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 5.79 5.49 5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 5.79 5.49 5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance 7.90 - - -
Basecorp Finance 8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 5.79 5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans 6.20 - - -
CFML Home Loans 6.45 - - -
CFML Prime Loans 8.25 - - -
CFML Standard Loans 9.20 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.99 5.89 -
First Credit Union Standard 7.69 6.69 6.39 -
Heartland Bank - Online 6.99 5.49 5.39 5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.60 6.65 6.40 -
ICBC 7.49 5.79 5.59 5.59
Kainga Ora ▼7.39 ▼5.79 ▼5.59 ▼5.69
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 ▼6.69 ▼6.49 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 ▼5.79 ▼5.59 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 5.75 5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - ▼5.89 ▼5.49 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 ▼4.89 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.75 - - -
TSB Bank 8.19 6.49 6.39 6.39
TSB Special 7.39 5.69 5.59 5.59
Unity 7.64 5.79 5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 7.70 5.95 5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.79 5.69 5.69

Last updated: 12 December 2024 9:22am

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