Compliance minus the complication

Former Newpark general manager Barry Read has launched a new advisory business, Independent Development Solutions, to help advisers comply with the new regulatory regime.

Wednesday, March 23rd 2011, 7:13AM

by Benn Bathgate

He said the new business would specialise in working with financial adviser businesses, particularly non-QFE members, to get their systems and processes compliant and allow them to focus on core operations.

"What I've seen in the last 18 months is advisers keep stopping and listening to every product provider newsletter about regulation, every group talk about it, so everybody stops and asks what does it mean for me?"

"They're all worrying about it and they're not doing business," Read said.

He said that while product providers and professional associations have offered help in the form of codes and professional development frameworks, there has been limited training and implementation support.

"We see there is a gap between all the theory of how to be compliant, and the reality of ‘how do I implement this in my own business?"

He said the business would focus on advisers without access to specialist compliance staff.

"What I'm looking for is the business that has to put together their own Adviser Business Statement (ABS), that has to put into place their own compliance agreements - there's no-one to do it for them, and they're trying to run their business."

"The way we want to operate is we want them to tell us how they operate and how they want to operate, and we'll tell them if there's any gaps in their current process systems and anything they need to add or take away to be compliant, rather than just hand them a practice manual and say ‘do this'."

He said the company aimed to create bespoke solutions for advisers varied compliance and regulatory requirements.

"It's very much engineering it from us. Show us what you do now, what you want to do, and we'll let you know whether we can make that into a compliant process that fits your customers, your market and your different level of skills. It's really personalising it for their business. It is definitely a tailored solution rather than an out of the box, one-size-fits-all answer."

He said the company would provide development support in three key areas; compliance management systems, professional development and mentoring , business development plans and coaching.

"We tell you what you have to do if you have to do anything, and if you don't, just keep working."

Benn Bathgate is a business reporter for ASSET and Good Returns, email story ideas to benn@goodreturns.co.nz

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