[GRTV] FMA monitoring gives FAPs eight out of 10

The regulator’s monitoring team visited 60 class one and class two financial advice providers (FAPs) the length of New Zealand in preparing the report, says FMA director deposit taking, insurance and advice Michael Hewes.

Regardless of size there was a consistency across both classes of FAP in adhering to code requirements and standard conditions.

The FMA monitoring approach focuses very much on what is appropriate for the size of the business, says Hewes, but from a findings perspective, there was consistency across class ones and class twos.

“Our expectation is that if you are a larger FAP you will have the resources to undertake the oversight, supervision and monitoring of financial advisers.”