Advisers 'should be next for regulator check'
The Financial Markets Authority and Reserve Bank have asked bank bosses for details of what they are doing in response to the misconduct brought to light by the Australian inquiry. They this week asked life insurance companies for the same information, including steps being taken to tackle the potential for misconduct. They have until June 22 to provide the details.
Adviser Sonnie Bailey, who worked as a financial services lawyer reviewing adviser files in Australia, said he hoped to see attention turn to adviser groups next.
“I also hope the FMA contacts industry associations and asks whether they pay anything more than lip service to enforcing their codes of conduct.
“It's probably beside the point given that it's winding down, but the IFA's Code of Ethics required members to ‘act in the client’s best interests, above consideration of personal gain’. And the first principle of Financial Advice NZ's Code of Ethics is to ‘place the client's interests first’.
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