News
Advisers to become personally liable for advice
Monday 3rd of August 2009
Chapman Tripp partner Tim Williams said that the new requirement that only individuals can provide financial advice was not widely understood and may not have been thought through entirely.
He has suggested that officials reconsider the Act in this respect. The prohibition will also mean that broker tip-sheets will need to be attributed to individuals rather than coming from the broker firm.
Some of the other anomalies identified by Williams were:
- The ban on listed companies giving market guidance. This is inconsistent with the requirement in the NZSX and NZDX Listing Rules that listed companies give guidance through NZX when required under NZX’s continuous disclosure rules.
- The removal of the current general relief for issuers in favour of relief for offering documents and advertisements only.
- The removal of the current relief for procedural advice on how to invest (rather than what to invest into) except in relation to KiwiSaver
- The failure to provide relief for financial advisers, who are not journalists, writing in the media on specific products, as frequently occurs.
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