The Future of Advice
The significance of 2015 for financial advisers is becoming increasingly apparent.
Leading the list of reasons is Parliament’s requirement - in section 161 of the Financial Advisers Act(“FAA”) - that the Ministry of Business, Innovation and Employment (“MBIE”) prepare a five-year review of the FAA for the Minister of Commerce and Consumer Affairs, and for Parliament itself. It must include recommendations for any amendments. That review is due by mid-2016, with much of the preparation for it is happening this year. In parallel, there is a review of financial service provider (“FSP”) legislation.
Have your say
This year is a key opportunity to shape the future of advice. We will be inviting PAA members to share their views as the 2016 FAA review process progresses, but also welcome you to share any of your thoughts as and when they arise.
The Government’s review of the Financial Advisers Act (FAA) has now been formally initiated and most of the discussion over the next few weeks is likely to stay at a ‘principles’ level - looking at the current status of the financial advice sector and assessing how the legislation itself is operating.
There is a particular principle at the heart of many professions, the financial advice profession included. It represents the fundamental distinction between sales and advice, it is central to mis-selling in financial services, and in many cases it is the part of the AFA Code that generates the greatest amount of work and expense in the advice process.
That principle is suitability.
FAA Review - Survey Feedback
Thanks to all who completed the survey we ran at the National Advisers Conference. Four key questions were asked which delivered some clear insight on particulary areas of FAA Revew focus. Below is a link to the survey results summary. Click here to view the results
Code of Professional Conduct
The Code of Professional Conduct for Authorised Financial Advisers (AFAs) is available here. Information specific to registered financial advisers can also be found here.