Regulation an opportunity
Britain has gone through a significant period of regulatory change, including a move away from commission to a fee-for-advice model. Advisers have left the business and there have been reports that clients have opted out of advice because they did not want to pay a fee.
But Barry Horner, who is chairperson-elect of the Financial Planning Standard Board’s Board of Directors, told the Certified Financial Planner Professional Day in Auckland this week that regulation could help good businesses.
He said advisers in Britain now all had their own ways of determining what fees to charge, which had to be agreed with a client before work began. Anyone who was to charge an ongoing fee had to also offer an ongoing service.
Horner said he expected the qualification standards for financial advisers to lift but the regulator had identified more than 100 “gaps” where many advisers needed to top up their education to comply with the new rules. But businesses that were running well would have the jump on their competitors in the face of new rules.
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