Financial Advice New Zealand has released the details of its Quality Service Mark (QSM) framework for its members.
The new body envisions the QSM becoming a widely recognised mark for quality advice in New Zealand and it comprises six elements:
- Professional promise
- Regulatory compliance
- Third party references
- Professional development
- Advice process review
- Experience
Financial Advice NZ stated that as an evidential mark, the QSM is intended to complement Pinnacle designations, such as CFP and CLU and will be renewed every three years.
Speaking to RiskinfoNZ, Financial Advice New Zealand chair, Sue Brown, describes having a QSM for the new body as being “core to the objectives that had been set for us”.
She says for members, the QSM highlights “the importance of quality, professionalism and trust and is an important tool in the way that members can achieve those things. For the public it gives them confidence that they are working with an experienced and professional adviser.
“So all of the three things that we are particularly charged with achieving – standards, advocacy and promotion – are served by the mark,” she said.
The QSM will be available to members late this year, subject to the final sign-off of new code and regulatory requirements, and launched to the public in early 2019.
…The three things that we are particularly charged with achieving – standards, advocacy and promotion – are served by the mark
For existing members, the mark will initially be optional for the first five years, after which it will be a requirement of membership.
“It’s important, we think, that long-term being a member of Financial Advice NZ is the quality mark,” says Brown.
“We are very conscious that there is a lot of change happening in the regulatory regime at the moment and we want to make sure that what we’re doing works alongside and assists our members to achieve the standards that they need to achieve.”
The body said there will be no extra membership fees for advisers attaining and holding the QSM.
It added, if a member is part of a group with an approved audit/review process, there will be no additional cost to that levied by the group.
If a member is not part of a group with an approved process, the only direct cost will be the Advice Process Check itself and Financial Advice NZ has stated it will update advisers on expected costs by the end of September.
Brown said it is too early to describe what the mark will look like, but noted “we will be looking at a way of delivering the mark that sits well with the overall brand design for Financial Advice NZ and also is easy and accessible for the people that have the mark to use and to show that they have it”.
In the coming months, Financial Advice NZ will be working with members, the Member Advisory Committees (MACs) and key industry stakeholders to refine the details of the QSM, including how advisers can attain the mark and promote that they have it to the public.
“There’s no point hiding lights under bushels, we want the public to know who the people are who have it,” explained Brown.
We’re really excited to be releasing information we see as being a very important step towards the future of the financial advice profession
“Our website will be an important communication mechanism so that members of the public can see that they are working with experienced and professional advisers and I’m sure that members who have the QSM will want to include it in their own publicity materials and on their business cards.”
She said the new body will be working with Groups and service providers to incorporate the QSM in their audit review processes, to help members in attaining the mark.
“We’re really excited to be releasing information we see as being a very important step towards the future of the financial advice profession,” said Brown.