News Round Up: September 24
The reversal of the ban on direct selling has been welcomed, but could have gone further.
Chapman Tripp has welcomed the Select Committee changes to the initial draft of the Bill, which threatened to ban Authorised Financial Advisers (AFAs) and Qualifying Financial Entity (QFE) advisers from making unsolicited calls or in-person approaches to promote financial products unless to existing or former clients.
However, Chapman Tripp said the new rules would still prevent Registered Financial Advisers (RFAs) from advising on products including KiwiSaver, other managed funds, shares and insurance policies with a savings element.
“We suggest though that the restriction should apply only to the more complex category one products so that RFAs who are not AFAs or QFE advisers can continue to promote the simpler category two products to the general public.”
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