Code changes impact RFAs

The Code Committee for Financial Advisers is asking for feedback on a range of proposed changes, including moves to put more emphasis on the requirement that advisers put clients first, a new qualifications framework that will increase minimum standards for AFAs, more flexibility and clarification in CPD requirements, conflict of interest concerns and moves towards a “KiwiSaver-only” adviser.

Peter Christensen, of Camelot, was part of a teleconference with the committee on Friday. He said the brunt of the changes would be felt by RFAs. 

The committee is proposing that instead of doing all the qualifications for AFA qualification, some RFAs could complete a standard that only covered KiwiSaver. They would then have the same compliance requirements as AFAs but only be able to offer advice on KiwiSaver, not other investments.

Christensen said he understood what the committee wanted to achieve but the compliance that came with being an AFA was exactly what put a lot of RFAs off making the step up.
Instead, he said the committee would be better to remove the RFA designation completely over a period of years, and make KiwiSaver qualifications the first paper registered advisers had to do as part of the step up.