Adviser designations need attention: Scott
Clarifying the designations advisers use could help boost perceptions of the sector and consumer confidence, says Massey University’s new director of financial planning.
Tuesday, October 28th 2014, 6:00AM
by Susan Edmunds
Associate professor Janine Scott said the RFA, AFA and QFE adviser designations were not very helpful for the sector’s branding and credibility. “There needs to be more solidarity and clarity in the designations planners have. I don’t think the names are being used clearly and may be a distraction from providing needed financial advice.”
Scott has come to Massey from the US and said it took time to understand how the system worked.
“I had to do serious research and reading to understand who does what and who can deal with category one and category two. If I had no financial planning background I would say ‘forget it, I’ll listen to what Sally next door says.”
A lack of trust in advisers was a problem shared worldwide, Scott said. But she said New Zealand had been through more regulatory reform than some jurisdictions.
She said it could take some time to tell whether it was beneficial.
“Outside of adding costs, are the consumers winning? We’re trying to better serve consumers with each regulatory scheme, is that what’s happening? That’s something that will work itself out in time.”
Massey University has been planning a financial advice degree but Scott said it was too soon to say how far away that might be. “I need to know what the demand is like.”
But she said she did not think current levels of training were adequate for financial advice.
“I don’t think six months of training is adequate to say ‘I am a financial adviser’. But I am biased when it comes to education because I’ve done nine years. I’m not saying that advisers aren’t competent to do their jobs but we need to ensure there’s a level playing field and consumers can trust what is behind the adviser’s name.”
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