The Wrap: Unofficial QSMs; Formal CWG complaint lodged: Will anyone follow AMP?

It may have been another short week, but that didn't stop it from being one with plenty of heat and action for financial advisers. Here's our take on what's happened.

Friday, April 6th 2018, 2:03PM

The issue which has caused the most discussion is Financial Advice New Zealand's announcement about its planned QSM (quality service mark) designation.

I can't help but question the choice of acronym. If I was to get a QSM I'd want it to be presented in Government House by the Governor-General!

The idea of a mark has merit, but as many readers have pointed out there are quality marks already. The internationally-recognised CFP and CLU designations. Many advisers have only remained members of the IFA to retail their CFP.

There certainly are many other questions. To see what other advisers are saying click here to go straight to their comments.

The next hot issue, and it is not a new one, is the composition of the Code Working Group. Good Returns reported this morning that the Minister of Commerce, Kris Faafoi and received no formal complaints about the committee. (For the record he inherited it. The National Party minister Jacqui Dean made the appointments).

However, since that story ran we can confirm a formal complaint has been made. You can read it in the comments here.

AMP's surprise decision to ditch offshore trips for its advisers has been pitched as being in response to concerns made by the FMA

The reality is that AMP mainly uses its own advisers for sales of life insurance. In that sense it is not competing for "shelf-space" with other advisers. Also it's worth noting that AMP has in recent years been transforming its New Zealand business from being predominantly a life insurance company to a wealth management organisation.

The other point is that the future of AMP in New Zealand is under review. Details of what it's future looks like will be revealed at the parent company's annual meeting in May.

The big question is: Will other life companies follow suit? My guess is no. They would not spend the sums of money they do (in some cases seven figure sums) on these trips if they didn't generate business.

And to wrap up The Wrap, Richard Klipin from the Financial Services Council offers his view on churn or replacement business. Read it here.

Tags: AMP Churn Opinion