tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, December 21st, 2:19PM

News

rss
Latest Headlines

Ethical approach a business opportunity

New Zealand financial advisers are increasingly willing to consider the ethics of how they run their business, one specialist says.

Thursday, June 18th 2015, 6:00AM

Philippa Foster Beck, director of the UK-based Institute of Business Ethics, was in Auckland to present to the combined IFA/PAA conference last week.

The IFA runs business ethics courses developed by the Institute.

Foster Beck said she had been coming to New Zealand every year for the past five years and had noticed a change in attitude. "People are now much more interested and willing to listen. The number in the room willing to listen to me has increased."

But she said there was always more work that financial advisers could do to improve their own business ethics. "Organisations need to fight complacency."

Advisers needed to be more aware of their role and how they dealt with conflicts of interest, she said. "Upping their game and recognising that the dial has turned and the world has moved on. If they don't move with the times, they might potentially find themselves falling foul of new regulation."

The FAA review was an opportunity to engage and improve the ethical standing of the industry, she said.

One of the topics up for review is commission and Foster Beck said it was a difficult one for advisers to navigate.

While other countries are moving away from allowing commission, Foster Beck said they were acceptable if the remuneration model was clearly communicated to clients.

“If your business is commission-based you have to make 100% sure that it is clear so there is no misunderstanding. That misunderstanding creates an environment for misselling.”

Advisers should put themselves in their clients' shoes and consider whether things could be explained better, she said.

A more ethical approach would pay off for a business' bottom line, she said, as happy clients referred their advisers to their contacts.

Tags: ethics IFA PAA

« Warning: Don't ignore roboadviceSovereign finally confirms intention to sell Select »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • [The Wrap] The year that was - and what may happen next year
    “Hope you have a good recovery Phil. Interesting points 1.Box ticking already happening with SOA 's that look identical...”
    21 hours ago by Very Frustrated Adviser
  • [The Wrap] The year that was - and what may happen next year
    “Nice summary Phil. In short: . Consumers will expect more from the industry for less . Advisers will be increasingly time...”
    21 hours ago by Pragmatic
  • The good guys get told off
    “I can't quite reconcile the rationale, or lack thereof, with the comments so far. Pathfinder were found to have made misleading...”
    3 days ago by John Milner
  • The good guys get told off
    “As a follow on to this conversation: I'm assuming that the Regulator will be consistent by 'naming and shaming' the other...”
    4 days ago by Pragmatic
  • The good guys get told off
    “FMA does not understand the consequences of these type of actions A number of Insurance Companies were taken to court and...”
    4 days ago by LNF
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 4.94 - - -
AIA - Go Home Loans 7.49 5.79 5.49 5.59
ANZ 7.39 6.39 6.19 6.19
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 5.79 5.59 5.59
ASB Bank 7.39 5.79 5.49 5.59
ASB Better Homes Top Up - - - 1.00
Avanti Finance 7.90 - - -
Basecorp Finance 8.35 - - -
BNZ - Classic - 5.99 5.69 5.69
Lender Flt 1yr 2yr 3yr
BNZ - Mortgage One 7.54 - - -
BNZ - Rapid Repay 7.54 - - -
BNZ - Std 7.44 5.79 5.59 5.69
BNZ - TotalMoney 7.54 - - -
CFML 321 Loans ▼5.80 - - -
CFML Home Loans ▼6.25 - - -
CFML Prime Loans ▼7.85 - - -
CFML Standard Loans ▼8.80 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 5.69 - -
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Owner Occ 6.95 5.79 5.59 5.69
Co-operative Bank - Standard 6.95 6.29 6.09 6.19
Credit Union Auckland 7.70 - - -
First Credit Union Special - 5.99 5.89 -
First Credit Union Standard 7.69 6.69 6.39 -
Heartland Bank - Online 6.99 5.49 5.39 5.45
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society ▼8.15 ▼6.50 ▼6.30 -
ICBC 7.49 5.79 5.59 5.59
Kainga Ora 7.39 5.79 5.59 5.69
Kainga Ora - First Home Buyer Special - - - -
Lender Flt 1yr 2yr 3yr
Kiwibank 7.25 6.69 6.49 6.49
Kiwibank - Offset 7.25 - - -
Kiwibank Special 7.25 5.79 5.59 5.69
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 7.94 5.75 5.99 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 7.49 6.95 6.29 6.29
SBS Bank Special - 5.89 5.49 5.69
SBS Construction lending for FHB - - - -
Lender Flt 1yr 2yr 3yr
SBS FirstHome Combo 4.94 4.89 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.39 - - -
TSB Bank 8.19 6.49 6.39 6.39
TSB Special 7.39 5.69 5.59 5.59
Unity 7.64 5.79 5.55 -
Unity First Home Buyer special - 5.49 - -
Wairarapa Building Society 7.70 5.95 5.75 -
Westpac 7.39 6.39 6.09 6.19
Westpac Choices Everyday 7.49 - - -
Westpac Offset 7.39 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - 5.79 5.49 5.59
Median 7.49 5.79 5.69 5.69

Last updated: 23 December 2024 5:49pm

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com