FMA cancels advice firm’s FAP licence

The Financial Markets Authority has cancelled the Financial Advice Provider (FAP) licence of Filcare Services Limited, one day after the release of its Financial Conduct Report.

Filcare Services Limited served around 1,800 clients, many from the Filipino migrant community.

The cancellation came after Filcare lost its distribution agreements with major insurers Fidelity Life and AIA New Zealand, prompting an FMA investigation that uncovered significant problems with how the company operated. These included a failure to:

1. Keep adequate records of advice given
2. Exercise care, diligence and skill when providing advice
3. Ensure clients understood the advice they received
4. Demonstrate that any recommendations made were suitable

FMA head of perimeter and response Helena Lewis said Filcare advisers also failed to provide adequate scope and nature disclosures to clients, leaving them “unable to make an informed decision about whether to seek, obtain, or act on the advice.”