Cotton talks up adviser business statement
Cotton told the Institute of Financial Advisers (IFA) conference in Auckland that advisory firms would "probably" have to produce an 'Adviser Business Statement' (ABS) once the new regulatory regime comes into force.
"I say probably because the Securities Commission hasn't decided yet but what I'm telling you today is a strong indication [that the ABS will go ahead]," she said.
The ABS would have to include all relevant information about the people, products, risks and compliance procedures inside an advisory business. Cotton told delegates all firms would have to keep an ABS on site and make it available to Securities Commission enforcmement agents.
"The ABS would show the enforcement person how [advisory firms] go about their business," she said.
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