NZMBA pushes for clarity on authorisation

The New Zealand Mortgage Brokers Association (NZMBA) has been communicating with government officials to ensure mortgage and insurance advisers can opt-in to be authorised financial advisers (AFAs).

Wednesday, August 18th 2010, 11:26AM 2 Comments

by Jenha White

Changes to the Financial Advisers Act two months ago gave no authority to the Securities Commission to grant authorisation to mortgage and insurance providers, providing no clear pathway for those industries under regulation.

Pratley says he does not want to see government officials recommending that the government does not implement the ‘opt-in' option.

He believes the opportunity to become authorised not only provides security to the consumer, but also allows both mortgage and insurance advisers to structure their businesses to meet the standard required for financial planners or investment advisers.

He says ‘opting-in' will ensure that all advisers have the opportunity to be on a level playing field which is critical for the New Zealand consumer to regain confidence in the financial services sector.

At the NZMBA Industry Leaders Dinner held last Wednesday, Lianne Dalziel said it was an unintended outcome to restrict category 2 advisers from being able to obtain AFA status under recent changes made to the Act.

She said the Minister of Commerce, Simon Power was committed to consult industry around this issue and ensure regulations were appropriate for category 2 advisers.

However Pratley says this has been the case for two months now and with the Financial Services Register open it is important for certainty of this provision to be allowed as many advisers have invested millions of dollars in training and system upgrades which needs to be reflected in the overall outcome.

He says the NZMBA wants to ensure that the consumer has the choice to be dealing with an adviser that meets their needs both in product and level of advice as New Zealand consumers use both mortgage and insurance advisers to set the platform for their financial futures.

Jenha is a TPL staff reporter. jenha@tarawera.co.nz

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