No submission but Financial Advice NZ 'active' on new rules

Advisers should expect Financial Advice New Zealand to be “extremely proactive” in the transition period to the new adviser legislation, PAA president Bruce Cortesi says.

Tuesday, March 28th 2017, 6:00AM 1 Comment

by Susan Edmunds

Cortesi is part of the working group developing the new adviser association.

Because the new professional body is still in the development phase and will not be fully-formed before the submission deadline, there will not be a submission from Financial Advice NZ on the exposure draft of the Financial Services Legislation Amendment Bill.

The bill creates the new rules that financial advisers must live by.

IFA and PAA will submit on it separately.

Cortesi said: “It is important to acknowledge that Financial Advice NZ is in a building phase, and not formally in existence until the 100-working-day process has been completed, and that it has also been agreed by the memberships of both the IFA and PAA to wind up those respective Associations in favour of the formal establishment of Financial Advice NZ.”

But the working group has identified advocacy on behalf of advisers as a key theme for the new body.

“Advocacy is viewed as a crucial function by the majority of advisers and other industry partners we heard from during the consultation stage," the group said.

"The continuing changes to legislation; changes in how the public seek information and engage with financial services; the growth of roboadvice and many other factors absolutely necessitate a strong and unified voice to represent advice and advisers. During the planning stage we have been taking a hard look at the best way to support this crucial role of the new body; the approach that will deliver a truly powerful voice for advice and advisers."

Cortesi said the association would have a role to play as the legislation was developed, despite not being in a position to have a lobbying voice at this stage of the consultation.

“I can confirm that both the IFA and PAA will continue to canvass and support their respective Adviser memberships in the transitional phase of the new adviser legislation, and that the working group of Financial Advice NZ will also be doing the same but with a broader view of the Adviser industry as a whole. I would expect that PAA, IFA and the working group of Financial Advice NZ to be extremely proactive on all fronts," he said.

Tags: Financial Advice New Zealand

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Comments from our readers

On 28 March 2017 at 12:01 pm Murray Weatherston said:

Is it only me that thinks it bizarre that 3 days out from the closure of the submissions on the Exposure Draft, PAA appears to be using its PR oxygen to explain why Financial Advice New Zealand will not be making a submission, rather than making a statement about what PAA itself will be submitting?

I would have thought that if you were wanting to show how strong the new body (if it ever takes flight) will be on advocacy, you would be trying to show how lively the likely constituents were currently in the advocacy field.(it would be just too weird to think they were deliberately trying to set the bar low for the new body!)

But maybe that's just another aspect of modern life and business that i don't understand.

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