The Code – Issues for advisers (Part Two)
This commentary looks at the new Code of Conduct and issues, opportunities and challenges for adviser businesses. It is written by John Berry, a member of the Code Working Group (CWG), in his capacity as a commentator on NZ financial markets and as CEO of Pathfinder. This commentary therefore contains his personal opinions and is not written on behalf of the CWG.
Last week in Part One, I presented an overview of the process and challenges faced by the CWG in developing a new Code. This Part Two focuses on two key issues for which adviser input continues to be welcomed by the CWG:
- What is an appropriate level of duty of care; and
- What is an appropriate base level of adviser competency?
Good advice outcomes
The CWG’s 12 March 2018 consultation paper proposed a duty of care level based on what the CWG termed as “good advice outcomes”. This was intended to mean that a consumer receiving advice could reasonably expect quality advice meeting their needs and expectations. The term reflects the FMA’s guidance on what constitutes good conduct (i.e., a “good outcome”).Click the button below to subscribe and will have free unlimited access for a limited time to full article and all other articles on the site.
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