Advisers risk going out of business
Advisers risk going out of business for a while with only 1,612 having passed Standard Set B out of an expected 5,000 as time runs out for the authorisation application deadline.
Friday, January 28th 2011, 7:26AM 12 Comments
by Jenha White
Securities Commission director of supervision Angus Dale-Jones says if there is a single message he can get out it is "go and sit Standard Set B".
Dale-Jones says advisers can apply for accreditation ahead of actually sitting the exam if they want to "get all of the administration out of the way".
But given the large workload expected, anyone who fails to apply by March 31 may not receive authorised financial adviser (AFA) status by the July 1 deadline, which means they will not be able to practice.
As of January 17, there were 4,333 candidates registered with ETITO and only 1,627 have passed Standard Set B which currently has a 77% pass rate.
Only 653 advisers have booked for Standard Set C assessment with a mere 66 advisers having completed the assessment.
ETITO calls on advisers yet to engage with the assessment process and to take action and submit portfolios at the earliest opportunity to avoid any last minute rush.
In the meanwhile the Securities Commission has been tracking forward with AFA accreditation, with the numbers having increased from 10 AFA's on December 1 to 48 AFAs on 21 January.
The numbers to be processed have also increased from 112 to 187.
Jenha is a TPL staff reporter. jenha@tarawera.co.nz
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Comments from our readers
Whatever happened to the "between 10,000 and 30,000 Advisors" that acting Commissioner of Advisers, Annabel Cotton promised?
Based on current stats, one individual is being authorised per day of the month (or 1.5 per working day). Given that there are only 260 working days per year(not allowing for any leave at all) that means only 390 individuals can be authorised in any given year.
Noted above 112 applications are in and not complete, so there is only room for some 53 more to be authorised within the window left until 1st July.
I'm not sure what is going to happen to the other 1,000 individuals. On this basis there could be a 3-5 year wait!
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