Advisers pleased with shape of CoFI law
Chief executive Katrina Shanks says she is “pleased overall” with the way the Financial Markets (Conduct of Institutions) Amendment Act (CoFI) will affect advisers.
CoFI will impose a code of conduct on banks, insurers and non-bank deposit takers. Last week the Financial Markets Authority (FMA) released proposed guidelines for how CoFI will be imposed on advisers.
Shanks is pleased with what she has read about its methods. “We like the emphasis on the risk-based approach towards distribution networks which carry a known risk,” she said.
This was a reference to a section in the proposed guidance where the FMA said costs could be held down for both financial institutions and advisers themselves if they tailored their work to the level of risk that they face.
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