FMA warns of looming deadline for financial advisers

Tuesday 24th May 2011 4 Comments

As many as 700 financial advisers may have to stop giving advice on KiwiSaver, managed funds and other investment products from July because they do not have the appropriate qualifications under new rules.

Financial adviser regulations come into full effect from July 1, making it an offence for unlicensed financial advisers to provide retail clients with personalised investment planning services and financial advice on investment products.

Just over 600 advisers have been authorised to date and despite being able to apply since August last year 700-plus advisers still had not completed the competency assessments required, said Financial Markets Authority (FMA) director of financial adviser regulation Mel Hewitson.

Nearly 400 of them need to do an assessment which can take three to five weeks to get through.

"It's clear they're running the very real risk they won't be authorised in time," Hewitson said.

The FMA had set June 17 as the target date to process those advisers who had sent in full and complete applications to allow them time to notify their clients they can continue offering investment services, she said.

The FMA would be checking advisers who applied but did not make the deadline and would take action against any person falsely claiming to be an authorised financial adviser after July 1.

NZPA

Comments from our readers

On 24 May 2011 at 3:46 pm Unhappy Adviser said:

FMA need to stop threatening & to start assisting the process. They are great at demanding the hoops we need to jump through & enforcing payment, but not the least forthcoming in helping us by letting us know at what stage our applications are at. It is really messing with my head. Am I AFA or not, what are they waiting for, what is missing if anything, when do they envisage I will know. Stop threatening & start helping people across the line.

On 24 May 2011 at 4:04 pm Grrrr said:

Grrrr, my application has been sitting with the Authority for just over 2 months now, but have I heard anything? So I've made the deadline however its that FMA that need to pick up their game!

On 24 May 2011 at 4:24 pm Steve said:

Twenty-five years in business, no complaints, happy clients (with references to match). But four papers must be done, umpteen case studies to complete, $6000-plus in costs ... and much of the "training" having absolutely no relevance to my ongoing business model. The politicians can wrap it up in all the glad-speak they want but this new regulatory process is a joke!

On 26 May 2011 at 6:40 am Cindy said:

Is there a register of those who are qualified and if so, where can I view this register of qualified advisers? In my opinion this requirement is long overdue!