About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, December 10th, 6:02PM
rss
Latest Headlines

Industry asks: Is transactional advice relief working?

Fifteen formal submissions have been made to the review of the Code of Professional Conduct for AFAs' minimum standards of competency, knowledge and skill.

Monday, December 7th 2015, 6:00AM

by Susan Edmunds

The Code Committee has been consulting on proposed tweaks.

The code governs how AFAs operate their businesses, covering qualifications, conflicts of interest, CPD and advice suitability.

The Financial Advisers Act review, which is also under way, may result in significant changes to the code, and could mean it is scrapped entirely.

But Code Committee chairman David Ireland previously said it was important to make sure it remained relevant and could meet its objectives, despite that possible upheaval.

The proposed changes consulted on focused on the competency requirements, recognising the new Level 5 certificate, which is the minimum standard for AFAs.

It will be set as the default and the code's alternative qualification scheme will recognise the old qualification for a period so that those advisers currently going through that qualification have time to complete it.

The code also needed to be updated to address changes as a result of the Financial Markets Conduct Act coming into effect.

As well as answering questions about those aspects of the code, submitters were able to give feedback on any other part they wanted to.

Ireland said the Code Committee received 18 submissions, 15 of which were formal.

“Given the very limited scope of the Code review and the extent of other regulatory activity going on at present, we weren't sure what to expect in terms of volume of responses. More would have been good, but in the context 15 is a good number and what we did receive were very helpful in relaying different perspectives on our proposals,” he said.

He said as well as the competency considerations, there was significant interest from submitters in code standard eight, and the efficacy of the new transactional advice relief.

This enables an AFA to provide personalised services without needing to determine suitability, to the extent provided for in the client’s instruction.

"Continuing concerns were expressed  on both the FAA's impact on accessibility of advice and FMA's guidance note on limited advice. We will be taking up the points raised with FMA.  We were particularly pleased with the level of engagement by tertiary providers and their constructive approach in helping to hone our thinking around alternative qualifications. They have given us a lot to think about."

Tags: Code Committee financial advisers Financial Advisers Act

« Fears any new licensing regime will be onerousLVR restrictions to be reviewed »

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 4.05 ▲4.05 4.49
ANZ Special - 3.55 ▲3.55 3.99
ASB Bank 5.20 3.89 4.05 4.39
ASB Bank Special - 3.39 3.55 3.89
BNZ - Classic - 3.49 3.45 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 5.65 4.75 4.75 -
Credit Union North 6.45 - - -
Credit Union South 5.65 4.75 4.75 -
Finance Direct - - - -
First Credit Union 5.85 3.99 4.49 -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 4.80 4.95 -
HSBC Premier 5.24 3.54 3.54 3.69
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 5.15 3.18 3.18 3.20
Kainga Ora 5.18 4.04 3.95 4.39
Kiwibank ▼5.20 ▲4.20 4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - ▲3.45 3.55 3.89
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 5.70 4.25 4.15 -
Pepper Money Near Prime 5.64 - 5.44 5.44
Lender Flt 1yr 2yr 3yr
Pepper Money Prime 5.18 - 4.98 4.98
Pepper Money Specialist 7.59 - 7.39 7.39
Resimac 4.50 4.86 3.89 3.94
RESIMAC Special - - - -
SBS Bank 5.29 4.85 5.05 5.49
SBS Bank Special - ▼3.39 3.45 3.89
Sovereign 5.30 ▼3.89 ▼4.05 ▼4.39
Sovereign Special - ▼3.39 ▼3.55 ▼3.89
The Co-operative Bank - Owner Occ 5.15 3.49 3.59 3.89
The Co-operative Bank - Standard 5.15 3.99 4.09 4.39
TSB Bank 6.09 4.35 4.25 4.69
Lender Flt 1yr 2yr 3yr
TSB Special 5.29 3.55 3.45 3.89
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.34 4.15 4.09 4.49
Westpac - Offset 5.34 - - -
Westpac Special - 3.39 3.45 3.99
Median 5.34 3.99 4.07 4.39

Last updated: 9 December 2019 9:02am

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