MBIE asked: What harm are RFAs doing?
Industry body SiFA submitted on the review’s options paper and said while it seemed clear that MBIE wants advisers who are not authorised to be brought up to the same regulatory level as those who currently are, it is not obvious why.
Robert Oddy and Murray Weatherston wrote that there was insufficient evidence that those who were operating as RFA or QFE advisers were doing harm because of it.
“The poorest reason for raising the regulatory bar for non-investment financial advisers is because they are now regulated differently from investment advisers. Surely you should be demonstrating problems and harm before even starting to consider regulation."
They said MBIE had argued that it did not want to change the exemptions in the law for lawyers and accountants, because there was no evidence it was causing consumers harm.
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