FAA doesn't work: Everett

Wednesday, June 17th 2015, 6:15PM 3 Comments

FMA chief executive Rob Everett says the FAA doesn't work, but wonders how much advisers want to change it.

"We strongly support the ‘root and branch’ approach to reviewing the operation of both of these sets of regulations," he says in a newsletter.

"Frankly, neither currently operate in a way that’s satisfactory to regulators, industry or consumers. But the appetite for change, at least in the advice sector, has to be questioned. We will continue to engage with the sector to determine our views on a number of the topics raised."

Good Returns has requested an interview with Everett.

Tags: Financial Advisers Act FMA Rob Everett

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Comments from our readers

On 19 June 2015 at 11:59 am Giles Thorman said:
I think you could possibly find Rob that the appetite for change from Advisers is reasonably understandable. Your predecessor started his term at the Helm of the FMA by putting out a very offensive advert accusing Brokers of being Cowboys and how the FMA was going to "Round them up".

The FMA in fact has been spectacularly inefficient in this regard (please see today's article about Napier Broker that has been behaving appallingly for several years with seeming impunity); the advert set the tone for the relationship between the FMA and Advisers ever since.

We have had 5 years of threats; not guidance as to what we can do to get better at our jobs; or how we can service the General Public better; but constant threats that we will be in big trouble if we do not follow the rules; even when those rules at times have been ambiguous to say the least.

We did not write the FAA, we may have had some fairly minor input, but that would be about it. We have all spent fairly reasonable sums of money trying to be compliant and somehow the fact it has not worked is "our fault", in the same way the collapse of Finance Companies was "our fault".

I agree with you Rob, personally the appetite for change is fairly small to non existent.
On 19 June 2015 at 1:49 pm lewiboy said:
Well said Giles. Another straight to the point comment.
On 19 June 2015 at 3:52 pm Tash said:
Everyone says the FAA doesn't work - let's see some specifics. No doubt there are bits that can be improved but actual specific failures to achieve its aims would be useful. We can't blame the FAA for a lack of Action! No law will "work" unless there is ACTION, to promote it, enforce it and achieve its aims.

Far too frequently clients tell me (sadly) about blatantly misleading statements made to them by advisers. The FAA already makes that illegal, where is the ACTION, if not by the FMA then by honest advisers who are interested in raising professional standards?

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