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Jenha White
Jenha White
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NZMBA pushes for clarity on authorisation

Wednesday 18th of August 2010

Changes to the Financial Advisers Act two months ago gave no authority to the Securities Commission to grant authorisation to mortgage and insurance providers, providing no clear pathway for those industries under regulation.

Pratley says he does not want to see government officials recommending that the government does not implement the ‘opt-in' option.

He believes the opportunity to become authorised not only provides security to the consumer, but also allows both mortgage and insurance advisers to structure their businesses to meet the standard required for financial planners or investment advisers.

He says ‘opting-in' will ensure that all advisers have the opportunity to be on a level playing field which is critical for the New Zealand consumer to regain confidence in the financial services sector.

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Latest Comments
FMA wants clearer fees
@first time caller - I can see the complexity you highlight, but as above, investors should be able to see what they are paying without having to reference multiple documents. Investment admin can track and report deductions for tax, withdrawals, fees et al, would be /should be straightforward to aggregate advice fees into costs at member level... at least I hope so.
18 hours ago Goldcard
FMA wants clearer fees
@goldcard - how would you propose that a fund manager calculates the TER to include adviser fees given not all clients pay them and different advisers charge different fees, not to mention some advisors charge different fees to different clients? The advice fee gets disclosed in the adviser's disclosure statement and the statement of advice, so the client can add that to the published TER of the fund they are invested in to see how much they are paying overall.
1 day ago First time caller
FMA wants clearer fees
Schedule 4 of the FMCA regs 2014, particularly clauses 2(1) and 53(3) provide the basis for excluding individually charged advice fees from the statutory TER. This was introduced with the best of intentions, but now it is little more than an invisibility cloak for deductions from member accounts.
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