About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   tmmonline.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, November 19th, 1:16PM
rss
Latest Headlines

Whistle-blowers more exposed under new rules

Whistle-blowers are set to lose some of their identity protection when the new financial adviser legislation comes into force.

Tuesday, September 26th 2017, 6:00AM 1 Comment

by Susan Edmunds

Barrister Merran Keil, former senior legal counsel at the Financial Markets Authority, has pointed out that while the Financial Services Legislation Amendment Bill provides protection for financial advisers or nominated representatives who report breaches of the legislation to the FMA, it does not protect their identity in the same way as if the disclosure was made under the Protected Disclosures Act, or the Financial Advisers Act.

“During my time at FMA there were several occasions where an employee or ex-employee made disclosures to the FMA of acts that amounted to infringements of the law that the FMA regulates," she said. 

"In all cases the FMA did protect the identity of those Informants, however in one of those cases, it was obvious to the employer who the informant was because of the nature of the information the FMA had obtained. 

"This will probably be the case when the employer runs a small practice and the number of people that know about the infringing behavior is limited. Further the FMA will almost invariably withhold the release of information disclosing informants’ identities under the Official Information Act. But, my question is why the bill excludes the requirement that an Informant’s identity be kept secret, when that provision was included in the Financial Advisers Act?"

Sue Brown, former head of regulation at the FMA, said it was a point worth looking at.

"While I can see a difference in context and rationale between a Protected Disclosures Act disclosure - only applies to employees and disclosures about their employer - and the FSLAB provision - applies to financial advisers and nominated representatives and disclosures about anybody -  I don’t see any difference in context between the FAA and the FSLAB provisions," she said.

"Like Merran, I know of cases where the name of an informant who needed the protection has been kept confidential for many years. And I’m not aware of the FAA provision having created practical difficulties such as providing shelter for mischievous or vexatious informants."

A spokesman for the FMA said it would be considered.

“We are working on the implementation of the FSLA Bill. We are always pleased to hear from the market and advisers about the regulatory framework that we administer. As is our standard practise, we’ll consider the point raised, alongside others that we may have, and if it’s something we consider needs to be raised with MBIE we will do so.”

Tags: Disclosure financial advisers Financial Advisers Act Financial Services Legislation Amendment Bill FMA FSLAB regulation Sue Brown

« Peters as Kingmaker: What next for investors?LVR restrictions to be reviewed »

Special Offers

Comments from our readers

On 27 September 2017 at 7:07 pm gavin austin adviser business compliance said:
Fair comment - knowing her as an ex FMA employee I agree - best wishes Merrin

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?
    “And this subtle upgrade to the understanding of a complaint. Which changes the ISO definition from an expression of dissatisfaction...”
    1 day ago by JPHale
  • When is a client really a client?
    “Just released additional standards from the FMA. Record keeping potentially until 7 years after the death of the life...”
    1 day ago by JPHale
  • When is a client really a client?
    “@ReganT interesting that the two life advisers involved with the code working group discussion are the ones being argued...”
    1 day ago by JPHale
  • 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...”
    2 days 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...”
    2 days ago by regant
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