[Weekly Wrap] New rules on the way
The new version of the code is a step closer to coming into force this week.
Friday, December 6th 2013, 2:29PM
by Susan Edmunds
The Code Committee has submitted it to the FMA, who in turn will give it a tick and send it to the Commerce Minister, before it becomes the rulebook that advisers have to live by.
The changes in the new version have been well signalled and consulted on. I spoke to Gavin Austin today, who used to work for the FMA. He says, from his experience with auditing AFAs, it'll be the CPD changes that make the biggest difference and are potentially the biggest problem for advisers.
We'll have an in-depth look at the new code in the last ASSET magazine of the year.
New Zealand's lack of financial literacy is something that is talked about often. Insurers often blame it for the woeful rates of personal cover in this country and investment types point the finger at it when they bemoan the fact that most KiwiSaver members haven't a clue what their money's really up to.
This week, we heard more details about The Exchange, which is designed to solve that problem - but it'll just be the domain of bankers and big insurers. The Retirement Commissioner told me she's keen to tap into their resources - their websites, marketing and staff - to help improve Kiwis' financial knowledge.
She says they'll also be talking to the financial advice sector about what initiatives it too could come up with.
Earlier in the week, the Financial Services Council issued its annual review, which repeated its desire for higher contribution rates to KiwiSaver and a rejig to make the tax treatment of accounts more favourable.
In other news, global equities may be offering better value than those closer to home, and fund managers are feeling optimistic about the next five years.
| « CPD change may be a challenge | IFA working on pro-bono offering » |
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