Hi

The most contentious issue with adviser regulation is going to be around qualifying financial entities or QFEs as they are now known.

Today's story on Good Returns gives an indication of this issue. What looks like happening is that category two advisers will be treated quite differently depending on who they work for. The advisers who are most at risk here are those in the insurance and mortgage categories and the two groups will be the independent advisers versus ones who work for a QFE.

Essentially the independents will, it appears, have higher thresholds to cross and costs. An adviser in a QFE will not have to do this, rather it will be done by their employer.

Another strand in this argument is which organisations will be allowed to become QFEs. One would expect banks and the big financial services firms with adviser distribution networks (like AMP and AXA) to be QFEs, but I know many smaller groups would like this status too.

Some sessions I have heard on this have generated quite heated debate. It could become the new version of the rather fractious and fierce fight years ago over "grandfathering". (This was were old hands were accepted into the industry without having to attain certain qualifications while newer advisers had to complete a lot of study.)

Sticking with regulation we have the issue of how adviser competency will be measured under the new rules. ASSET Magazine has an article which explains what the expected standards will be.

Also the organisation responsible for industry training in financial services, the ETITO, is planning to hold some sessions on how the National Qualifications Framework works and what an Industry Training Organisation does; the purpose and structure of unit standards and national qualifications, and; how workplace assessment takes place.

You will need to let the ETITO know by Monday if you are interested in attending these sessions. See the Good Returns Diary page for more information.

To add a little more spice to the story we have the head of the Securities Commission calling for a single Australasian advisory market.

The home loan market continues to be a stand-off between the banks and the Reserve Bank. Very little of last week's cut to the official cash rate has been passed on yet, although ANZ National yesterday made some small cuts to short term rates. To see what's on offer at the moment check out Good Returns' comprehensive mortgage rates table here. In the variable rate market two of the smaller lenders took on the banks with cuts this week.

Good Returns news for insurance advisers this week focused on Russell Hutchinson's lates opinion piece: Folly, money and pain, plus there are a few updates on health insurance sales and Southern Cross. The news stories are here and you can find out more about Southern Cross here.

Have a great weekend.
Philip

www.goodreturns.co.nz