AFA requirements should be stricter: Hughes
Chief executive Sean Hughes said there was little his organisation could do to turn down would-be applicants. But he said improvements to the regulatory regime would significantly reduce the likelihood of any future failings in the style of Ross Asset Management.
His opinion was sought from Commerce Minister Craig Foss at the end of last year.
Hughes told the minister the FMA could only turn down a would-be authorised financial adviser on the grounds of good character requirements or criminal convictions.
He suggested that applicants should be asked to satisfy a “fit and proper” assessment, or that the FMA be given some ability to exercise discretion in determining who could become and AFA. He also suggested that applicants could be required to submit detailed business records and client files.
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