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%)
Increased compliance costs and uncertainty about the future dominate the thoughts of a lot of Kiwi advisers at the moment.
As the industry edges closer to the new advice environment following the passing of the Financial Services Legislation Amendment Bill, these were the two main challenges recorded by advisers in our latest poll, where 38 percent think increased compliance costs will be their greatest challenge in the new advice world, while just under three in ten advisers (29 percent) are uncertain as to what their most significant challenge might be.
The entire purpose of FSLAB and its accompanying Code of Professional Conduct, adviser licensing and minimum education standards, according to Minister Faafoi, is aimed at improving the standard of financial advice provided in New Zealand, enabling consumers to access financial advice with confidence and make informed decisions.
The decision whether to self-license or join another Financial Advice Provider weighs heavily in the minds of around one in four advisers (24 percent), while neither minimum education levels nor the possible removal of sales incentives (not including commissions) rates a mention in terms of future challenges.
Our poll remains open for another week and we welcome your contribution to this question…