Tough and tougher

Friday, May 15th 2009, 4:28PM

Two news items dominated the headlines this week. One was the appointment of the first Commissioner of Financial Advisers and the second was the Institute of Financial Advisers' decision to name and shame two members.

Both are significant and both have some interesting background.

With the commissioner appointment, one has to wonder why the Ministry of Economic Development can't find a suitable candidate. The appointment of Annabel Cotton to the role in an interim capacity shows there are troubles with recruiting someone. Also we understand the Minister of Commerce hasn't even got a short list of candidates to choose from. It does make one wonder if there are some power plays going on in the background.

The bigger headline this week, arguably, was the IFA's decision to name two advisers who were found guilty of various charges by the institute's disciplinary committee. This is a big story for all advisers, not just IFA members, as it has had major media coverage, even making the front page of the NZ Herald.

Sure it makes the IFA look as though it is doing something about members who do wrong. But read the two judgments (Ryder and Lunn) and decide whether the naming and consequent shaming of the two men was appropriate. I bet there are many worried advisers out there, and I bet the IFA has had a few resignation notices since its announcement.

Advisers aren't the only ones facing tougher rules. This week the Reserve Bank told us some more about its plans to regulate the non-bank sector. Included in this story is further details of what is on the agenda. No doubt the regime will force more change on the industry in the next year.

Another story on Good Returns this week also focused on regulation. This one tells advisers about a new set of guidelines for advisers from Standards New Zealand. It is something all advisers should read and copies are available here.

In the Good Returns People section this week we have the search for a new chief executive of the PAA and the appointment of a new general manager at Newpark.

Meanwhile in Insurance news we have our latest practice management piece from the Million Dollar Round Table, Transforming wealthy friends into clients, and some news on an Auckland firm, Brokers' Independent Group or BIG.

The Mortgage world continues to be busy with rate changes, including some fixed rate cuts from banks. Also in the Good Returns Mortgage Centre we now provide you with views on the interest rate market from some of the experts. Two pieces there this week are; Borrowers could be $1.2 billion better off and Floating rates too low.

Across on the other side of the market we have details of a new PIE compliant fixed income fund from First New Zealand Capital. You can read details about it here, and find out more by using this link.

Have a great weekend.
Philip

www.goodreturns.co.nz

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