Registered but unable to give insurance advice

The problem in the registration process has been highlighted by Independent Development Solutions (IDS) director Barry Read.

"To be able to act as an adviser you need to select ‘Financial Adviser Service', and then select retail advice, and if you want to authorise or not. Not means category two products only or RFA," he said.

He said that from 750-plus adviser process checks he has conducted, up to 15% of RFAs and around 5% of AFAs had not selected the correct financial service/services.

"Common mis-selections by RFAs are ‘Broking Services' and ‘Acting as an Insurer.' Or they have ticked ‘Financial Advice Service' but not ticked for Retail Clients," Read said.