Do you support the draft Code of Professional Conduct for Financial Advice Services?
- Yes (63%)
- Not sure yet (26%)
- No (11%)
Our latest poll asks whether you support the draft Code of Professional Conduct for Financial Advice Services, which was released last week for industry consultation.
The proposed Code (click here) outlines twelve standards across two main categories which the Code Working Group is seeking to have implemented:
Part I: Ethical Behaviour, Conduct and Client Care
- Treat clients fairly and act in their interests
- Act with integrity
- Manage conflicts of interests
- Take reasonable steps to ensure that the client understands the financial advice
- Give financial advice that is suitable for the client
- Protect client information
- Resolve complaints
- Not bring the financial advice industry into disrepute
Part II: Competence, Knowledge and Skill
- Have general competence, knowledge and skill
Keep competence, knowledge and skill up-to-date
Have particular competence, knowledge and skill for designing an investment plan
Have particular competence, knowledge and skill for other types of financial advice
When viewed from a consumer perspective, these standards all appear to be logical, fair and reasonable – and when implemented, the CWG would presumably be envisioning an environment in which most Kiwi consumers would be comfortable with and trust the minimum standards of adviser conduct and competence that these standards will require. This would deliver its aim (and that of the Government) of better advice outcomes for more New Zealanders.
…these standards all appear to be logical, fair and reasonable
Many current financial advisers, though, will probably consider that you already observe most or all of the twelve proposed standards. But sometimes, the devil can be in the detail. For example, do you support the minimum competency standards outlined for investment and other types of financial advice?
We know that the Code Working Group is actively seeking industry feedback on its draft Financial Advice Code, and you can take this link (click here) to provide your feedback to the Ministry of Business, Information and Employment.
In the meantime, cast your vote in our poll, make your voice heard and we’ll report back to you next week…