It’s time to engage investors about the new regime

Monday, May 30th 2011, 5:06AM 2 Comments

by FMA

Those who attended the PAA conference would have heard FMA’s Chief Executive Sean Hughes talking about how, at its heart, regulation is about getting better outcomes for the people who need and use financial advice. Giving the public information about regulatory changes is a key part of FMA’s role and, over time, will help give investors more confidence because there is really good news for investors in the changes that are taking place. We’ll be using a mix of activities to get these messages out to the public.  We’ll be taking a positive, engaging approach. We know many New Zealanders struggle with financial literacy so we want them to believe that getting advice from an appropriately regulated adviser is a good idea. If there are opportunities you’ve spotted or particular messages you think it’s important for consumers to know, send us your ideas. We won’t be able to action all of them but they may spark a thought about how best to explain what’s changed. We’re also working on some specific initiatives, such as updating the old Securities Commission’s Using an Investment Adviser flyer. We have FMA branded Codes of Conduct now available for AFAs.  Would AFAs like to be mailed copies automatically or is this something you’d just request if you need it? I welcome your thoughts. Mel Hewitson
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Comments from our readers

On 30 May 2011 at 10:30 am traveller said:
I thought that "providing(sic) clients with care, diligence and skill" was always a part of being an adviser and was certainly part of the FPIA/IAFP code of wthics. So what is different? The important thing I can see is that we now have a regulator with legal powers to investigate adviser practises and take action when problems with an adviser arise.They need to use those powers and publicise actions. Regardless, I suspect it will take some years for investors to take advisers seriously,given the disasters of recent years and especially as New Zealanders are reluctant to pay fees.
On 13 June 2011 at 9:06 am Andy said:
"We know many New Zealanders struggle with financial literacy so we want them to believe that getting advice from an appropriately regulated adviser is a good idea". The thought was there. Now all we have to do is convince the financially illiterate to fork out money to pay for the advice.
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