tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, May 6th, 6:14PM

News

rss
Latest Headlines

Thumbs up for roboadvice rules

New Zealand financial institutions are welcoming moves to allow roboadvice in this country.

Wednesday, April 27th 2016, 5:59AM

by Susan Edmunds

The Financial Advisers Act review is considering how roboadvice could be accommodated under the legislation covering advice. At present, the law requires financial advice to be provided by a human adviser.

In the options paper issued by the Ministry of Business, Innovation and Employment, it is suggested that financial advice could be permitted online if it is from a licensed entity,  or that a hybrid option could be allowed where consumers must be given the option to speak to person if they needed to.

BNZ said it was in favour of enabling online advice because it was what consumers wanted.

“We estimate we are currently experiencing 400 digital interactions for every one face-to-face interaction and the trend is increasing.”

But it said opening up digital advice channels in New Zealand created the possibility that international operators could expose New Zealand customers to a greater risk of fraud or the sale of inappropriate products.

Almost all submitters said the requirements for digital advice licenses should be the same as other forms of advice, although some said only licensed entities should be permitted to provide it.

“With respect to the sale of product from roboadvice sites, AMP submits that there needs to be safeguards and sufficient controls in place over the providers and products that are connected to any roboadvice sites,” AMP said.

Advice group Share said clients, not the method of advice, were important.

“Regardless of the method of delivery, financial advice should always have the client’s best interests at heart, and be relevant and appropriate,” Share said.

“A competitive market will deliver innovation – whether that is in the product, pricing, promotion or delivery mechanism. As long as there is an identified customer need, one or more market participants will seek to fulfil that need. Legislation just needs to be a framework that ensures that there is a level playing field and that the customer receives quality advice and that they are at the heart of all decisions.”

There were concerns that roboadvice could be used as a method to distribute one particular provider’s product.

The Institute of Financial Advisers said the place for roboadvice in New Zealand should be to assist an adviser to deal effectively with smaller clients rather than replacing personal advice. “Experience overseas (US and Australia) has highlighted concerns around this form of advice delivery suggesting an increased proportion of the promoter’s product which creates a significant conflict of interest.”

Some, particularly bigger providers such as AMP, Westpac and ASB said it was not necessary to have a human adviser as a mandated option.

“Westpac's experience of providing banking services online is that where a consumer has chosen an online channel, there is little demand for the option to speak to an individual,” Westpac said.

Tags: Financial Advisers Act roboadvice

« Better disclosure needed - but how?LVR 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
  • The death of the single adviser FAP
    “change for the better is good, all for it. but change for the sake of changing is bad. should "consultants / experts" be...”
    9 hours ago by w k
  • The death of the single adviser FAP
    “I am reading the comments and article with interest. Doesn't affect me after 50 years in the industry. Driven by bureaucrats...”
    12 hours ago by LNF
  • The death of the single adviser FAP
    “devil's advocate here The headline implies it to be a bad or intimidating eventuality. So, is the "death" of CERTAIN...”
    12 hours ago by All hat no cattle
  • The death of the single adviser FAP
    “well said, tony and dcwhyte. yup, the arrogance, ignorance .... and tunnel vision "experts" couldn't see the elephant in...”
    13 hours ago by w k
  • The death of the single adviser FAP
    “I don't see anything of this or commented wholly wrong. There are plenty of advisers that I have talked to that have...”
    13 hours ago by JPHale
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.25 2.59 2.89
ANZ 4.44 2.85 3.19 3.49
ANZ Special - 2.25 2.59 2.89
ASB Bank 4.45 2.25 2.59 2.89
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - ▼2.25 ▼2.55 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 ▼2.85 ▼3.15 3.39
BNZ - TotalMoney 4.55 - - -
Lender Flt 1yr 2yr 3yr
CFML Loans 4.95 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 2.50 1.99 2.35 2.45
Heretaunga Building Society 4.99 3.40 3.50 -
HSBC Premier 4.49 2.25 2.35 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - 2.25 - -
ICBC 3.69 2.25 2.35 2.65
Kainga Ora 4.43 2.67 2.97 3.13
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.40 3.20 ▼3.40 ▲3.64
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.35 ▼2.55 ▲2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.20 3.24 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
Lender Flt 1yr 2yr 3yr
SBS Bank 4.54 2.79 2.99 3.29
SBS Bank Special - 2.29 2.49 2.79
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - 2.09 - -
The Co-operative Bank - Owner Occ 4.40 ▼2.25 2.59 2.79
The Co-operative Bank - Standard 4.40 ▼2.75 3.09 3.29
TSB Bank 5.34 3.05 3.29 ▲3.59
TSB Special 4.54 2.25 2.49 ▲2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 ▼2.85 3.19 3.49
Westpac - Offset 4.59 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - ▼2.25 2.59 2.89
Median 4.55 2.71 2.99 2.89

Last updated: 6 May 2021 10:51am

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