Many advisers postponing study

Many category two advisers are postponing courses while they await further information about voluntary authorisation according to ETITO.

Thursday, August 26th 2010, 6:50AM

by Jenha White

Manager of strategy and corporate relations Michael Frampton says any announcement to provide certainty will be the biggest impetus for category two advisers to make final decisions about their course of action.

Adviserlink general manager David Cairns says of it's portfolio of advisers training, around 10% are mortgage and insurance advisers that have either pulled out of courses or postponed them while they wait for clarity.

Commerce Minister Simon Power told Good Returns he is expecting to receive advice from officials on the issue in the next couple of weeks.

ETITO says it has formed the clear view that voluntary authorisation is an important feature of any regime seeking to encourage discretionary behaviours that are in the best interests of New Zealanders and the professionalism of the industry at large.

Frampton says ETITO believes the need for the voluntary provision is heightened by the need to recognise the tremendous commitment of insurance and mortgage advisers over the last six months to programmes of training and assessment leading to authorisation.

"A resolution to the uncertainty that continues to exist for Category Two advisers must be expedited,"says Frampton.

He says the only clarification so far, provided by the revised draft Code which offers additional relief to some advisers, is having the effect of reducing the number of enrolments.

"The change to voluntary authorisation has also naturally meant that some Category Two advisers will choose not to invest in their professional development, such as those advisers who may be nearing retirement."

Training providers have also noted that due to the nature of KiwiSaver as a Category One product, some advisers who initially enrolled in Standard Set E are switching to Standard Set D as they realise that they are going to need to be authorised.

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

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