[Weekly Wrap] Massive warning to advisers over record-keeping

This started as a News Alert and has morphed into a late Weekly Wrap. As often happens, big announcements come out on a Friday afternoon. The latest example was last week when the Financial Advisers Disciplinary Committee (FADC) released its decision on the latest case taken by the FMA to the committee.

This case is fascinating as the QFE the AFA worked for dobbed him into the Financial Markets Authority, which then took him to the disciplianry case. We are not allowed to reveal identities, however don't be surprised if there are further ramifications with advisers leaving this firm in protest to what happened.

We have a report on the hearing and one on the decision with the links below. At the heart of the matter the adviser hadn't kept adequate records, lost the ability to sell his business, yet the committee notes: "This is a case in which there has been no client complaint and no identified loss for any client of the AFA. Further there has been no identified material advantage to the AFA."

Rather the FMA is sending a massive warning to AFAs over their record keeping requirements.