Advisers told to dob in peers
He addressed the first day of the Professional Advisers Association conference in Auckland yesterday and told them that the FMA welcomed direction from the industry on where it should focus its monitoring and surveillance efforts.
There were reports of instances where market participants had seen but not acted on other participants’ behaviour, he said. “We can do our job better when you work with us…Tips and complaints are an important source of information for the FMA and we encourage market participants to advise FMS of any poor conduct or behaviour.”
He said market participants should have processes in place to encourage internal whistleblowing if an employee suspected inappropriate conduct within an organisation.
Hughes told conference delegates that tip-offs would be kept confidential. The FMA was alert to pressures on advisers such as reductions in income because of a drop in funds under management due to the economic downturn, he said.
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