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: Saturday, July 11th, 12:05PM

News

rss
Latest Headlines

Law changes look like Aussie model: Stewart

Smaller advice firms could find the new legislative regime is harder to deal with than they expect, if the Australian experience is anything to go by.

Thursday, December 14th 2017, 6:00AM

by Susan Edmunds

Nick Stewart, who runs advice firm Stewart Group and the Boutique Advisers Alliance, said the new Financial Services Legislation Amendment Bill looked set to take New Zealand down a path similar to the UK or Australian regulatory model. “It reads like the Australian regime but instead of calling it a dealer group they are calling it a Financial Advice Provider (FAP).”

The Financial Markets Authority has indicated that it will allow the requirements of licensing to be tailored to fit the needs of smaller firms.

But Stewart said it should be expected that there would be limitations to that. “There’s no carveout for small firms in Australia.”

He said every business there that was registered to provide a service had to meet the same requirements. “At the end of the day it’s consumers that suffer if someone is given a carveout. I understand the regulator wants as many as possible to front up on day one but when the rubber hits the road and you look at what you need to start operating, it could be very onerous.”

Many great financial advice businesses were not well-positioned to be great registered financial service businesses, which would require governance structures, compliance regimes and proven IT support and infrastructure. “That’s a different game.”

Some would be determined to cling to independence and wear the cost of outsourcing what they could not do themselves, he said. Others might decide it was better to get out and sell their books, he said. Still more might opt to continue as financial advisers under the umbrella of a bigger organisation.

“Those might go to others and say ‘can I have what you’ve got and maintain my independence’. You don’t want to have to sell your book to join a dealer group. There will be dealer groups that want a percentage of the ownership of the business. Others are like what we provide with the Boutique Advisers Alliance, they are independent.”

Dealer groups would need to be careful that they did not take on the liability and responsibility for more advisers than they could handle, he said.

The alliance would take care to only take advisers that met its standards, and not to take on too many at once. “If you were to run the business on the style of come one, come all you would increase your risk and lessen the service to those you are already working with.”

It has recently hired Lizzie Hill as service manager to help grow the business and act as secretary for the group’s investment committee.

Boutique Advisers Alliance has its own custodial platform that uses technology to help advisers meet their regulatory requirements. It has a back-office team which aims to let advisers grow their businesses by taking away some of the strain that comes from day-to-day administration.

Tags: compliance Dealer Groups financial advisers Financial Services Legislation Amendment Bill FMA regulation Stewart Group technology

« Dealer groups prepare for legislation changeGetting to Know: Paul Sewell »

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
  • Harking back to the old days
    “Tactical move by CIGNA and looks like they have a lot of bench strength now in sales, underwriting and product / pricing...”
    2 days ago by hitting rock
  • Greens want ACC extended to cover sickness
    “Never happen. The Greens are such an aspirational bunch. Must all the weed. They 'want' all sorts of unlikely things...”
    2 days ago by All hat no cattle
  • Harking back to the old days
    “Really positive news. NZ has been blessed by many successful leaders and it is good that their skills can skill be utilised...”
    2 days ago by Francis L
  • Harking back to the old days
    “I dare say Cigna just got that extra grunt it's been looking for....”
    2 days ago by Matron
  • Greens want ACC extended to cover sickness
    “The Greens have no idea The purpose of the Woodhouse report was to remove the "at fault" component of accidents Sickness...”
    3 days ago by LNF
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 3.19 3.19 3.49
AIA Special - 2.69 2.69 2.99
ANZ 4.44 3.15 3.25 ▼3.39
ANZ Special - ▼2.55 ▼2.69 ▼2.79
ASB Bank 4.45 3.19 3.19 3.49
ASB Bank Special - 2.69 2.69 2.99
Bluestone 4.44 4.44 4.44 4.44
BNZ - Classic - 2.65 2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.25 3.29 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
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 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.60 2.65 2.80
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 3.19 3.49
SBS Bank Special - 2.79 2.69 2.99
The Co-operative Bank - Owner Occ 4.40 ▼2.69 ▼2.75 ▼2.99
The Co-operative Bank - Standard 4.40 ▼3.19 ▼3.25 ▼3.49
TSB Bank 5.34 ▼3.35 3.49 3.79
TSB Special 4.54 ▼2.55 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.55 2.69 2.79
Median 4.55 3.19 3.22 3.39

Last updated: 10 July 2020 9:02am

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