[Weekly Wrap] Rules and more rules

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We started this week by asking a question that has been floating around for a while now - could dealer groups step in as a step in the regulation process?

Friday, June 14th 2013, 12:39PM 1 Comment

by Susan Edmunds

The idea is that dealer groups could monitor their members in a similar way to the system used by QFEs.

The response to the idea was mixed. While Camelot's Peter Cave told me he was already thinking something along those lines, David Whyte said - and I'm paraphrasing here - that dealer groups weren't really up to the job. The comments section on this story has been running hot all week. I put the question to the FMA itself but so far have not had a response.

Then, the FMA issued a warning that people would need to be on their toes about AML pretty much right from the beginning. It's only a matter of weeks now until the new legislation takes effect. Unlike the introduction of the FAA regulations, this time there's going to be a lot less hand-holding from the FMA and a lot more action. The FMA said those who hadn't been audited would be the first to come under its watchful eye.

Speaking of rules and regulations, the tax laws around foreign superannuation schemes had apparently become so complex and confusing that some people could not understand whether they were actually meant to pay any tax at all. The good news for advisers dealing with people bringing large superannuation schemes to New Zealand is that there are moves to clarify what tax they must pay.

And yesterday David Ross was charged with false accounting and theft by a person in a special relationship. That prompted the FMA to give a warning to advisers offering DIMS that a guidance will be issued. I've noticed that a lot of the mainstream media coverage of Ross has repeatedly referred to him as a "financial adviser", which is unfortunate for the rest of the industry considering he seems to have had an easier ride than some to AFA status, by virtue of his being an accountant.

In other news, there's another US fund manager coming to New Zealand, high-yielding equities are still a good option for retirement income, even if interest rates rise, and KiwiSaver schemes are pondering whether they can open up the accounts of people who are bankrupted.

On our people news page, the Retirement Commission and Newpark have made appointments.

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