Adviser hits out at commission disclosure proposals
The Auckland-based adviser has responded to a discussion document released by the Ministry of Business, Innovation & Employment as part of work to develop regulations within new financial advice laws.
MBIE has proposed that advisers make information about the fees they charge, such as commission, publicly available. MBIE has previously said “consumers will benefit from being aware of these commissions and incentives".
In his response, seen by TMM, Patel said he feared the proposals would not be “fair” for advisers. He said the move would favour lenders providing direct mortgages, as they would not be forced to disclose their own fee structures, thus appearing cheaper to the customer.
Patel’s response was made in a personal capacity and not on behalf of the Financial Advice NZ lending advisory committee, of which he is a member.
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