[The Wrap] FARs just RFAs spelt differently; Invest responsibly
Advisers get a wake up call on regulation and given a date to make a decision by; Ignoring responsible investing isn't an option and a case of spinning numbers.
Friday, August 17th 2018, 2:00PM 
2 Comments
Yesterday I was fortunate to attend a dealer group's session on the coming regulation changes. It was aimed at Registered Financial Advisers. This group seek its own licence, but said to members that it would like to know by November 30 if members planned to join their licence or seek their own.
The point here is that November 30 is not that far away.
Although the FSLAB Bill is still waiting for its second reading in Parliament it could progress through these final stages quite quickly. Advisers probably need to be thinking that the bill won't change too much and they will need to be thinking about the future shape of their business.
I did like the comment that officials wanted to get rid of acronyms like AFA, and RFA, but FAR is just RFA spelt differently.
We have had quite a bit of Responsible Investing this week. The Responsible Investment Association report shows that this is really an area that advisers can't ignore anymore.
The report has some useful information showing growth, trends and investing styles. It's well worth a read. If you would like a copy drop us an email.
The other piece, Getting to Grips with RI, also garnered some comments which are worth a read.
Last week we mentioned Naomi Ballantyne's recent podcast. To find out more about it read this article. I've now had a full listen and it's a good story.
And to wrap the week up here's a little story about creative use of statistics. The FMA, which seems a little obsessed with KiwiSaver fees rather than net returns put out a press release headlined: "KS members say dollar fee information is useful".
Thankfully, Tamsyn Parker at the NZ Herald looked at the data and headlined her story: "Most Kiwis fail to notice changes to KiwiSaver statements".
And she was correct.
"While 50% did not notice the new fee information, among the 31% of respondents who did, 53% said they thought the fees were about right, 30% thought they were too high and 4% thought they were too low. 18% of those surveyed were unsure if they’d seen the new fee information or not."
The FMA is getting a little wayward with its use of numbers. The data it threw out around so-called life insurance was poor, or more technically, statistically unreliable.
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Comments from our readers
"Adviser": a person who gives advice in a particular field... such as financial services. May also be referred to as counsellor, mentor, guide, consultant, consultee, confidant, confidante, guide, right hand man, right hand woman, aide, helper… you get the picture. They are usually recognized by putting the client's interests first.
"Sales Person": An individual who sells goods and services to other entities. The successfulness of a salesperson is usually measured by the amount of sales he or she is able to make during a given period and how good that person is in persuading individuals to make a purchase. They are usually recognized by putting their master's interests first.
...just saying...
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Point - Make a point. Evidence - Quote the text. Review - Check your work. However replacing AFA and RFA with FAR may cause problems. A member of the investing public may conceivably confuse an Adviser who is part of a QFE an FARQ. Or a non-aligned non-vertically integrated Adviser as a FAROUT. If 50% of KiwiSaver respondents did not notice the new KiwiSaver fee information, there is not much hope anyone will care or notice whether their Adviser is a AFA, RFA, FAR, FARQ or FAROUT.