About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Monday, November 18th, 7:10AM
rss
Latest Headlines

Milestone day for financial advice in New Zealand

A new bill to replace the Financial Advisers Act was to be introduced on Thursday, Commerce Minister Jacqui Dean announced at the National Advisers Conference.

Thursday, August 3rd 2017, 12:24PM 2 Comments

“It is a milestone day in terms of financial advice,” the Minister of Commerce and Consumer Affairs, Jacqui Dean, told delegates at the National Adviser Conference in Auckland.

The Financial Services Legislation Amendment Bill is a package of changes to the regulation of financial advice following the review of the Financial Advisers Act.

“The changes introduce an even playing field of conduct and competence duties across the industry, and remove the legislative barriers around advice.”

She says the review of the Financial Advisers Act has been a comprehensive process and it help clarify where there had been “unintended consequences in practice.”

The bill will improve access to advice by enabling sensible advice conversations, she says.

“Advisers will be able to have conversations with their clients which are determined by the client’s wants and needs, rather than by arbitrary barriers imposed by regulation.”

“Removing the confusing advice classifications will mean advisers can focus on giving suitable advice, rather than wasting time figuring out what they can and can’t do.”

The titles of those giving advice (AFA, RFA and QFE) was a hot topic throughout the review.

The bill introduces the term “nominated representative” as instead of the earlier proposal to us “financial advice representative”.

“I think the term nominated representative gives a clear signal to consumers that the advice they are being given is tied to the firm.”

The bill also introduces a more level playing field for advisers when it comes to determining the right level of knowledge, skills and competence.

“The new regime focuses on the conduct and competence of all who provide financial advice,” she said.

“This includes an industry-wide obligation to put the consumer’s interests first.”

“I think that the current situation where some advisers are required to put the consumer first while others are not is far from ideal.

“Consumers shouldn’t have to guess when an adviser may or may not be putting their interests first.”

Dean also gave an assurance costs of implementing the changes will be kept down.

“I want to assure you that any such costs will be justified and only imposed where there is a real benefit to consumers.”

The Bill introduces “firm licensing” which will allow for economies of scale. Firms of multiple advisers will be able to collate their compliance activities and achieve cost and time savings in the long run.

For example, a business with ten advisers will no longer have to complete ten identical ‘Adviser Business Statements’, as these processes are now completed at the firm level.

She says a ‘one size fits all’ approach to licensing is unlikely to work, so the cost of licensing will be proportional to the size of the business.

Tags: AFA conduct Financial Advice New Zealand financial advisers Financial Advisers Act FSLAB Jacqui Dean QFE regulation RFA

« Getting to Know: Sue BrownLVR restrictions to be reviewed »

Special Offers

Comments from our readers

On 3 August 2017 at 3:06 pm MikeBeuvink said:
"Nominated Representative"
Clear as mud to me.
On 4 August 2017 at 8:38 am mitsilad said:
Sadly the Minister has been sucked into this errant belief that RFA's are a lesser being that are uneducated and do not put their clients first. I did not study for 6 years, obtain an industry qualification, join a professional body who has always had a code of context to be told that I need to re-train and put my clients first. I have done that for over 40 years. How many AFA's can say that?

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • When is a client really a client?
    “In a previous reply I responded to the concept of payment as a trigger. I actually agree it’s not. While we don’t often...”
    20 hours ago by regant
  • When is a client really a client?
    “Tash are you being deliberately obtuse? I didnt say you have to keep sending/giving disclosure every year, I said you have...”
    21 hours ago by regant
  • FMA fesses up to website breach and apologises
    “@LNF I was specifically speaking to the word not the mandatory. So not misunderstanding, more a crack at the culture that...”
    2 days ago by JPHale
  • When is a client really a client?
    “@tash, as insane as it sounds, yes. The mishmash of rules around this basically say you both need to keep records of who...”
    2 days ago by JPHale
  • When is a client really a client?
    “wow ..... looks like advisers have to watch out for booby traps. do clients need to have any responsibilities? who do...”
    3 days ago by w k
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 3.95 4.49
ANZ Special - 3.55 3.45 3.99
ASB Bank 5.20 4.05 3.95 4.39
ASB Bank Special - 3.55 3.45 3.89
BNZ - Classic - 3.55 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 6.15 4.95 4.95 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
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 3.35 3.35 3.35
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 5.80 ▼4.14 ▲4.30 4.64
Kiwibank - Capped - - - -
Kiwibank - Offset 5.15 - - -
Kiwibank Special - ▼3.39 ▲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 - ▼3.55 3.39 3.89
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 3.49 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 - 3.55 3.45 3.99
Median 5.34 4.04 4.09 4.39

Last updated: 15 November 2019 4:16pm

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