Adviser investment statement text amended
The required text for financial adviser investment statements has been changed as part of an update of the Securities Regulations 2009.
Wednesday, June 29th 2011, 7:26AM 
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Commerce Minister Simon Power announced the updated regulations, which come into force this Friday, to align the regulations with the Financial Advisers Act 2008.
He said the new regulations did not require the immediate revision of investment statements already in use of those currently being prepared.
"The old requirements will continue to apply to investment statements dated earlier than August 1, 2011. Issuers can, however, choose to comply with the new requirements from July 1," he said.
The amendments include adding information at the front of the investment statement to make reference to the new financial advisers regime and the Financial Markets Authority (FMA), the inclusion of a statement making prospective investors aware names and addresses may change after the date of the investment statement and where and how to obtain up-to-date names and contact information.
They also omit the heading ‘Engaging an investment adviser' and all the subsequent text, substituting the heading with ‘The FMA regulates conduct in financial markets.'
The new text says that financial advisers can "help you make investment decisions" but includes the caveat "using a financial adviser cannot prevent you from losing money, but it should be able to help you make better investment decisions."
Changes to KiwiSaver scheme investment statements are also included in the amendments, including details of its manager, administration manager (if any), directors of the manager and trustee.
"This aligns the requirements for KiwiSaver schemes with the requirements for unit trusts rather than superannuation schemes, which reflects the structural changes to KiwiSaver schemes effected by the KiwiSaver Amendment Act 2011."
Investment statements will also now have to refer complaints to an approved disputes resolution scheme rather than an ombudsman.
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