Law changes an imperfect improvement
It was introduced last week for its first reading and is unlikely to pass this parliamentary term.
A number of alterations were made from the exposure draft that was put out for consultation – most notably to remove the contentious “financial advice representative” category.
This had been criticised as confusing and potentially misleading for customers who might not understand the difference between an independent financial adviser and a financial advice representative working for a financial advice provider and limited to a certain set of products.
The bill replaces the FAR designation with “nominated representatives”, who have the same restrictions on the way they operate. QFE advisers will generally become nominated representatives and some larger financial advice groups may look to become FARs with representatives working for them.
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