Chapman Tripp partner Tim Williams said that the new requirement that only individuals can provide financial advice was not widely understood and may not have been thought through entirely.
He has suggested that officials reconsider the Act in this respect. The prohibition will also mean that broker tip-sheets will need to be attributed to individuals rather than coming from the broker firm.
Some of the other anomalies identified by Williams were:
“When it becomes effective, the Financial Advisers Act will apply more broadly than the current disclosure laws. It will apply when advising on an increased range of products and even when giving advice to wholesale investors,” Williams said.
“The Act also will extend the current disclosure obligations to include requirements for authorisation and registration and will set up qualifications and conduct standards."
The Financial Service Providers (Registration and Dispute Resolution) Act will impose a requirement for financial advisers to have dispute resolution services available.
“While there will be opportunity to include exemptions in the regulations, which are currently being prepared, if the prohibition on providing financial advice through companies is to be removed, amendments to the Act will be required because it would be such a fundamental change,” he said.
| « IFA awards members | Sovereign takes regulation bull by the horns » |
Special Offers
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved