Will the Government's financial advice legislation reforms improve access to high-quality financial advice?
- No (65%)
- Yes (21%)
- Not sure (15%)
Our latest poll seeks your verdict on whether the current FSLAB regulatory reform process will achieve the Government’s primary goal of improving access to high-quality financial advice for New Zealanders.
All Kiwi advisers would embrace the objective of consumers having access to higher standards of advice in this new regulatory environment, where the best interests of the consumer will be at the centre of all advice activity and processes (not that they’re not already), while a single set of standards will be applied to all advisers authorised to deliver financial advice.
In its 2018/19 Annual Corporate Plan, the Financial Markets Authority itemises factors that may drive poor sales and advice practices, which include:
- Inadequate disclosure of fees, product risks or conflicts
- Inadequate training and/or capability of staff
- Inappropriate marketing, misleading advertising and pressure sales tactics
- Failure to recognise and promote customer needs and interests
- Inappropriate incentives
In addressing these issues, the FMA states:
“We are working with Government and industry to strengthen the regulatory regime around advice as part of the Financial Services Legislation Amendment Bill and that this will be a major priority for the FMA over the next few years.”
As an adviser, you’re at the sharp end of the market – the coal-face, when it comes to actually delivering advice, and it’s your own conduct that converts much of the Government’s theory into practice.
Do you think the goal of higher-quality advice to consumers will be achieved? Are you on board with the proposed FSLAB Bill and Code of Professional Conduct reforms? Do you think they will have the desired outcome? Will the Kiwi consumer be better off as a result?
We welcome your feedback and will report back next week…