Advisers can't hide in QFEs
Dale-Jones said while a number of changes to the regime were in train, QFE advisers who sold third-party category one products would still have to be individually authorised by the Securities Commission and meet the same standards as non-QFE advisers.
"They would have to be AFAs [authorised financial advisers]," Dale-Jones said. "In fact [QFE advisers] will have two streams of compliance - direct accountability to the Securities Commission as an AFA and the QFE would also be responsible for their actions."
However, he said QFE membership might ease the authorisation process for advisers with a number of "streamlining" measures being considered by both the Securities Commission and the Code Committee.
For example, the Securities Commission could recognise a single QFE adviser business statement (ABS) - one of the key compliance documents expected under the new regime - rather than require each individual adviser in the group to produce their own.
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