IFA applies shame factor

In judgements made public yesterday, IFA members Craig Lunn of Feldwick Financial Services, Invercargill and Bruce Ryder of Korimako Insurance Services, Dunedin were named after being pleading guilty to serious breaches of the body's 'Code of ethics and professional conduct' - principally due to finance company investments.

As well as being publicly censured, Lunn and Ryder were fined $37,000 and $30,000 respectively to recover the costs of the disciplinary procedures.

In the rulings the IFA disciplinary committee also said both advisers were "not to provide professional financial planning or investment advice for as long as he is a member of the Institute unless he has obtained and proves to the Institute the relevant qualification as per the Institute's or statutory requirements".

While Lunn and Ryder are still registered members of the IFA it is understood they are in the process of resigning from the industry body. In their defence statements both advisers contested the IFA's jurisdiction on the grounds they had not paid annual fees and were therefore "non financial" members.