12 Feb The Financial Advisers Act is settling in, but what does that mean for you?
You will have seen in the news and heard from us already that new legislation around the financial services sector was introduced in July last year. On a basic level, this legislation regulates who can be a financial adviser and what services they can provide, as well as setting out conduct and disclosure requirements that all advisers must adhere to.
For you, the Act protects you against any unethical behaviour on the part of your adviser, ensuring that we continue to upskill and provide only the most professional and competent level of client care. This has always been a cornerstone of Financial Success Group’s values, but it’s good to see the rest of the industry coming into line.
For us as advisers, it has changed the way that we operate and approach our business model. This has ramifications on the way we interact with you too. In the past, many may have approached business as transaction-based advisers, making the sale that it suited them to make at the time. Now, in this more regulated environment, the emphasis is on sound, quality advice and empowering you to make well-informed decisions about your situation. We provide the recommendations, but – by law – can only put forward suggestions that are in your best interest.
There is also a difference now in what advisers can help you with and the qualifications they hold. While all advisers had to meet certain regulatory standards before the Act took effect, there were two levels of certification available…
RFA’s or Registered Financial Advisers may have variable levels of, or no formal qualification and are restricted to selling or advising on only less complex category 2 financial products, including personal insurance policies, but not investments, bonds, shares or Kiwisaver.
AFA’s or Authorised Financial Advisers, on the other hand, must have completed the prescribed formal qualifications for this accreditation and can offer a more complete scope of service. They can advise on both category 1 and 2 products and hence provide full investment planning advice.
Barry is pleased to have qualified as an AFA under the Act and can continue to advise on financial, investment and insurance matters. He’s here to answer any questions you have, so just give him a call – 09 921 7650
A huge percentage of Kiwi’s will do something with their insurance this year, especially those around key life stages, ie: those getting married, changing employment circumstances, starting a family or buying a home, business or investment property.
If you like the service and advice that Barry has provided in the past, consider whether you’d like your family and friends to talk to him first.
He can provide them with a comprehensive report on their current situation and give recommendations about the best next steps for their unique circumstances.