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
Latest Headlines

Changes for RFAs nothing to worry about

Regulation and compliance. It is the talk of the town at the moment. However, adviser Jon-Paul Hale explains why he is deeply concerned with the continued attitudes between advisers within the financial services industry,

Wednesday, June 6th 2018, 12:58PM

by Jon-Paul Hale

What I want to start with is some reassurance for you, the advisers out there on the coal face.

The New Zealand Financial Services Industry is undergoing some significant changes, the FMA, MBIE, and the Code Working Group (CWG), are listening to what the market is saying.

In the last two weeks; I have seen and heard a number of things from the industry regulators that should give advisers, and particularly RFAs, some comfort given the changes coming are focused predominantly on RFAs.

How it is panning out for us, professionals with good businesses and processes, should be relatively positive and painless as we work through the transition. We have had the AFA standards to measure against, even if we have not been AFAs.

Yes, there's likely to be change in your business, and there is going to be education requirements, or at least competency measures, you will need to meet.

It is possible that the education requirement, when it is all boiled down, may come more from your FAP, than the regulator, as the CWG will set minimum standards and your FAP may set a higher bar again. We will have to wait and see what the CWG come up with; I expect it will not be anything less than level 5 though.

Change is always a challenge, and often more often than not when things 'change' nothing about the 'change' is changed, it is more about the time needed for the people to socialise and accept that 'change' and work through and integrate it.

So strap it on and enjoy the ride, you are not going to be able to avoid it.

With that said, I have had the opportunity over the last few years to sit down with the FMA regularly and have some frank conversations; and what I am really pleased to be able to emphasise, is they are listening.

They are listening to all members of the financial adviser world, the big end of town and the not so big end of town. This is to ensure that they have a good perspective on what licensing is likely to do to our businesses, and how this impact can be understood and managed, to ensure that the advisers that we want to keep in the industry, stay in the industry.

While for much of what we have seen to date, there's nothing really in concrete yet, we need to see the final legislation from the government, based on what we know it looks like there is a solid strategy sitting behind it.

One of the big challenges for the FMA is the whole licensing piece, what it looks like, how to manage it, and also how to police it. It has been well debated in many forums.

The quantum of the licensing job is significantly bigger than what was needed for AFAs, with a conservative 5-6 times the population of AFAs to bring in for licensing as FAPs. If it goes as far as requiring all players giving advice needing to be individually accounted for, that challenge explodes to somewhere in the area of 25,000 people.

Add to this, the comments around the Code Working Group asking for advisers of various disciplines for an advisory subcommittee to the CWG.  This seems to be being organised with the various professional bodies we have.

To me, this is the CWG listening to the market and responding positively, with the potential of involving RFAs directly in the discussion.

We will see what that looks like, and how that transpires, in the near future, I hope.

Now that I have used my allocation of words, I will sign off on this installment and come back to you with my real concerns with what I am seeing in our market. Watch out for Part Two.

Tags: AFA Code Working Group Financial Services Legislation Amendment Bill regulation RFA

« New way to do overseas tripsIt's time for RFAs to make some noise »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment



Printable version  


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...”
    20 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

Mortgage Rates Newsletter

Daily Weekly

Previous 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%


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