Teething problems for NZFSG
NZFSG has drawn criticism from members for its transition to the new regime, with concerns over commission disclosure, fees and non-panel lending.
Thursday, April 22nd 2021, 6:09AM
According to several advisers, the country's biggest aggregator has experienced a few teething problems in the early days of the new regulatory regime, which began on March 15.
One adviser said NZFSG has experienced problems with its personal disclosure statements, also known as the "hello pack". The hello pack details commission and fees paid to advisers by lenders.
According to the adviser, a document sent out by the group for brokers to use featured some errors about non-bank lender commission.
The generic personal disclosure document included errors about non-banks including Basecorp, Southern Cross and Cressida Capital, stating that brokers received a 1% commission from them, when those lenders in fact pay a set fee to advisers.
The personal disclosure page with errors was removed, the adviser said. NZFSG did not respond to a request for comment.
There is also confusion around the treatment of fees and commission with some lenders.
Advisers are said to have been told they cannot charge a fee to a client if they receive commission on the same deal.
NZFSG brokers also said they had encountered problems placing clients with non-panel lenders.
One member said they were told to ask for permission to place business outside the G's panel.
"They are playing big brother to their members and telling us what to do," the adviser added.
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