2 Comments 2 Comments
The associations say the wording in the proposed code is too waffly and needs to be strengthened so a clear interpretation of their meaning can be obtained.
For example, in Code Standard 2, “does the right thing” is stated baldly with no explanation.
"Clear and concise definitions are essential to provide clarity for those providing financial services, and most importantly, to mitigate risk for New Zealanders. In general, the wording and phrases used throughout the Code need to be strengthened."
The associations also argue that proposals around professional development need to be stronger.
"Continued Professional Development is a key cornerstone of professionalism; the absence of a minimum requirement for continued professional development (CPD) undermines the concept of a Professional Code. There should be a requirement for financial advisers and nominated representatives to create an annual CPD plan, complete a minimum number of 15 CPD hours p.a. The Code should set out principles for the requirements of CPD."
"The Draft Code incorrectly suggests that a nominated representative and financial adviser are equivalent. This is clearly not the case. In Standard 9, the requirement that a FAP determine learning outcomes and have processes and procedures in place for nominated representatives, is very obviously different from the requirement that financial advisers meet the NZQA qualifications."
The associations agree there are other areas that the Code needs to be strengthened:
The effectiveness of the Code Standards is essential to ensure financial advisers and nominated representatives are professional, put the interests of New Zealanders first and to build confidence and trust with the New Zealand public.
The joint submission on the Draft Code of Professional Conduct was made by The Association, Financial Advice New Zealand, IBANZ, SIFA, and Triple A.
Good Returns has a copy of SiFA's submission and will report on that later. SiFA says "the overwhelming tenor of our submission is that the draft Code is both lacking in content and is platitudinous."
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AGN is a meeting of some of the leading commercial Adviser Distribution Organisations in NZ and is not an Adviser Association constituted as are those cited in the article.
There is, however, a commonality of interest with those organisations and collaboration on the Draft Code was progressed by ciruclating all attendees to the AGN meetings with the proposed submission and media release. There being no objections raised to date, I believe it is appropriate to signal broad support from the Group for the submission.
AGN participant organisations have an estimated 2,500 advisers directly/indirectly managed or associated. The following organisations are represented at the AGN quarterly meetings - in alphabetic order - Foxplan, Kepa, Lifetime Group, Milestone, Mortgage Express, Newpark, Planet, Plus 4, Preferred, Share, Solutions, The Mortgage Supply Company.