Lagging advisers who rush assignments sacrifice quality

Professional training provider Strategi Institute estimates at least four hundred of its enrolled financial advisers had to stop practising when the transition period for the new financial advice regime ended on March 16.

Thursday, March 30th 2023, 6:00AM

by Andrea Malcolm

Strategi managing director David Greenslade says, while it’s difficult to give exact numbers on how many of its 706 students, who are currently enrolled in the New Zealand Certificate in Financial Services (Level 5) version 2 programme, need the qualification to keep giving regulated financial advice, student feedback suggests it is likely to be at least 400.

Since the start of the year, more than 300 new students have enrolled with Strategi to do the full qualification. Additional students have registered to do extra specialist strands. Next to the Open Polytechnic it is the largest NZCFS training provider in New Zealand

Greenslade says large numbers are rushing assignments and not providing quality work. “This results in resubmissions which adds to the time it takes to complete.”

He says the Financial Markets Authority began asking for regular updates on numbers about one month prior to 16 March as they were keen to get an understanding of how many may not legally be able to provide financial advice by 16 March 2023.

Immediately after the cut off date, Greenslade had warned that the FMA would be closely watching these individuals and the FAPs that employ them. Since then the FMA has again been in contact regarding numbers of people still working towards qualification.

“These individuals may struggle to adequately service new or existing clients as it will be difficult to move from providing financial advice to a new role of providing information only.

“For FAPs with unqualified advisers, processes will need to be in place to handle clients of these individuals. This is potentially a high risk area so sound advice should be sought on how to handle this situation.”

Tags: Strategi