About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Monday, September 16th, 6:42PM
rss
Latest Headlines

[Weekly Wrap] It's going to take a long time

The review of the Financial Advisers Act is going to be a long and slow process,

Friday, November 7th 2014, 2:04PM

The review of the Financial Advisers Act (FAA) looks like it could be a rather long and slow process. This week I attended a function in Auckland where FMA chief executive Rob Everett, Code Committee chair David Ireland and MBIE Ian Southall talked about the impending review of the act.

The race track seemed like an appropriate place to discuss the changes as I suspect there will be a lot of going around in circles.  Further confirmation came when one of the three speakers called investors punters!

What became clear is that the process is still in its infancy. Indeed MBIE are only just turning their minds to it and the new minister, Paul Goldsmith, appears to have given it little thought yet. The speakers are hoping that it will be a "comprehensive" review of the act, but even that part is unclear.

The FMA had a good grip on the issues which need to be addressed including:

  • The confusion around the three designations  (AFA, RFA and QFE)
  • Churning (particularly in the insurance and KiwiSaver markets)
  • Minimum educational levels for advisers
  • Conflicted advice and remuneration
  • The quality of advice

What will worry some participants is that the review isn't scheduled to be completed and given to the minister until the middle of 2016 and then any changes will have to go through the Parliamentary process. Unless there is some sort of urgency then it is probably at least a couple of years until we see any changes coming into effect.

With some of the issues, like banks churning KiwiSaver members, one could argue the horse has well and truly bolted. (Couldn't resist that one!)

Everett raised the interesting question about how the financial advice sector sells itself and its value proposition to consumers. 

He also made an interesting comment the review should be seen as tweaking a new system which was put in place after a major meltdown and some of the things which were done may not have been appropriate, rather than saying the review is taking place as it is a sector which has problems.

You can view David Ireland's presentation here

The other big news this week was the NZ Super Fund's decision to dump AMP Capital as one of its managers. This took many by surprise and also illustrates how important people are in the investment process. While no one is saying too much publicly AMP Capital had lost a few key managers and that may well have spooked the Super Fund.

 

 

 

« What is regulation's purpose?IFA working on pro-bono offering »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.19 4.15 4.09 4.49
ANZ Special - 3.65 3.59 3.99
ASB Bank 5.20 4.15 4.09 4.39
ASB Bank Special - 3.65 3.59 3.89
BNZ - Classic - 3.65 ▼3.54 3.99
BNZ - Mortgage One 5.90 - - -
BNZ - Rapid Repay 5.35 - - -
BNZ - Std, FlyBuys 5.30 4.45 4.35 4.55
BNZ - TotalMoney 5.30 - - -
China Construction Bank 5.50 4.70 4.80 4.95
China Construction Bank Special - 3.19 3.19 3.19
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 5.95 - - -
Credit Union Baywide 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
Housing NZ Corp 5.19 ▼4.15 ▼4.09 ▼4.39
HSBC Premier 5.24 3.35 3.35 3.35
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.65 3.85 3.95 3.89
Kiwibank 5.80 4.30 4.34 4.74
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - 3.55 3.59 3.99
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.69 4.79 -
Resimac 5.30 4.86 4.14 4.19
Lender Flt 1yr 2yr 3yr
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - 3.69 3.69 3.99
Sovereign 5.30 4.15 4.29 4.55
Sovereign Special - 3.65 3.75 4.05
The Co-operative Bank - Owner Occ 5.15 3.65 3.59 3.99
The Co-operative Bank - Standard 5.15 4.15 4.09 4.49
TSB Bank 6.09 4.65 4.59 4.85
TSB Special 5.29 3.85 3.79 4.05
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.34 - - -
Westpac Special - 3.65 3.59 3.99
Median 5.35 4.15 4.09 4.19

Last updated: 16 September 2019 10:03am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com