Faafoi: Tell your clients how you're paid

Kris Faafoi

His cabinet paper making recommendations for the new disclosure regulations under FSLAB has been made public.

It includes requirements that advisers disclose the licence they operate under, the conduct and client care duties they are subject to, the types of advice they can provide, any fees or costs associated with the advice, recent enforcement action against the adviser, and the complaints handling process.

They would also have to disclose the commission and incentives they received and conflicts of interest that they might be subject to.

Disclosure would be made on an ongoing basis rather than in one single instance, which Commence Minister Kris Faafoi said could be overwhelming for clients.