[Weekly Wrap] Committee responds to feedback

The Code Committee administering the Code of Professional Conduct for Financial Advisers has stepped back from some of its proposed changes, but chairman David Ireland said it would have been remiss of it not to at least consider them.

Friday, October 4th 2013, 12:41PM

by Susan Edmunds

The revised draft of the new code was released yesterday afternoon.

Among the most notable changes from the version that was put out for consulation was the removal of the proposal for a "KiwiSaver pathway" for non-AFA advisers to offer advice on KiwiSaver.

The suggestion had been widely panned by people who thought it wrong to treat KiwiSaver investment advice differently from advice on other investment products. Ireland told me today the response hadn't been "100% negative".

The proposal has been replaced by AFAs who have not completed the investment strand being allowed to offer advice on the KiwiSaver first-home withdrawal process.

Another change is that professional bodies will have to work a bit harder on their CPD offerings. They will no longer be allowed to offer CPD that is counted as structured purely by virtue of being run by a professional body. The training will have to be offered by a qualified person and advisers will need to show how it is relevant to their business.

We'll have more industry response to the new draft on Monday.

The other big news this week was the resignation of Institute of Financial Advisers chief executive Penny Mudford. She's only been in the job about nine months. Nigel Tate wished her all the best but acknowledged a longer term would have been better.

They'll start looking for a replacement soon. Mudford would not comment when contacted, and referred me to Tate,

We also looked at the problems facing advisers dealing in fixed interest products, and talked to a former FMA staffer who said a recent FADC penalty was too light.

In insurance, Partners Life has reported a profit, and on the mortgage front, there's speculation preapprovals could soon be a thing of the past for house-hunters.

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