Which of the following represents the most significant challenge for your advice business?
- Meeting increased compliance costs to my business (47%)
- Deciding whether to self-licence or join another Financial Advice Provider (26%)
- Not sure yet (21%)
- Other (6%)
- Meeting the 12 standards in the draft Code of Professional Conduct (0%)
- Achieving Level 5 Certificate accreditation or its equivalent (0%)
- Dealing with the impending removal of all sales incentives (not risk commissions) (0%)
The passing of FSLAB into law heralds the beginning of a new financial advice regime in New Zealand, and we’re keen to know what you think will be your biggest challenge in this new era.
We accept the list of options we’ve offered isn’t exhaustive, but they cover the majority of the main issues you’ve told us are important to you, in what are definitely changing times for financial advice in New Zealand and many other jurisdictions around the world.
…there are still a lot of unknowns for advisers
While FSLAB has now become FSLAA – the Financial Services Legislation Amendment Act – there are still a lot of unknowns for advisers. These unknowns include: final details relating to disclosure requirements, licensing fees, industry levies, registration requirements, as well as the final wording of the Code of Professional Conduct (currently being considered by Minister Faafoi) and what’s going to happen with the potential removal of sales incentives, other than risk commissions.
Notwithstanding these unknowns, we expect many advisers and advice businesses have been weighing their options as to the next steps in this evolving advice environment, and we welcome your vote and any comments you’d like to make about how these changes may impact both you and your business.
Tell us what you think and we’ll report back next week…