The Code Working Group consultation paper has generated a great deal of discussion, as intended, on what advising under the new regime may look like.
Advisers may be unsure as to whether they should be preparing for the impending changes now or hold back until more has been confirmed.
The Professional Advisers Association’s Learning & Development Manager, Angi Mann, says advisers will have plenty of time to meet requirements in the lead-up to the new regime and time right now could be best spent on their business.
“There’s a lot going on and time’s better spent on their clients and on their business until there is more certainty,” said Mann.
“The Code is a discussion document at the moment – it’s indicating where we’re heading but that’s not firm and concrete yet.
“Until there is a final Code, you’ve got to make decisions that are best for you and your business right now as opposed to what potentially could be happening at some unspecified point in the future,” she added.
Until there is a final Code, you’ve got to make decisions that are best for you and your business right now…
The new Code is set to be approved by the Minister of Commerce and Consumer Affairs by late this year.
Mann stressed it’s important advisers remember that they have options and “…as their professional body we are there to help them through what those options are”.
As part of its role, Mann said Financial Advice New Zealand will provide information to members on changes coming up, practical approaches to tackle them and explain key points in developments via professional development days, workshops and potentially online learning/webinars.
“The minimum level of competence is at the Level 5 level – it doesn’t say that you have to have the qualification but you need to demonstrate how your knowledge and competence is at that level,” said Mann.
“If I were an adviser, I’d first be thinking, ‘what do I do on a daily, weekly, monthly, annual basis to prove that I’ve got that knowledge and competence?’,” she explained, which could be things such as attending provider updates, PD days, conferences and workshops.
Strategi Group Managing Director, David Greenslade, says to assist advisers through the new regime changes, they issue monthly updates to help advisers become aware of the changes and what steps they need to take.
“We have tailored our New Zealand Certificate in Financial Services Level 5 (NZCFS5) so it is relevant to today’s environment and for the anticipated new environment,” explained Greenslade.
“We have over 300 CPD modules on Radar (Strategi Institute CPD platform), many of which will directly assist advisers with the changes. Strategi have staff who regularly attend adviser/organisation conferences and PD days and we talk about the changes that need to be made.”
Greenslade says they recommend advisers get started on the NZCFS5 sooner rather than later.
Greenslade says they recommend advisers get started on the NZCFS5 sooner rather than later.
“It is likely most advisers will need to have a minimum education standard of NZCFS 5. We have been recommending for some time now that advisers complete the Core Strand and their relevant specialty strand of the NZCFS5 so they can obtain the certificate,” he said.
“They would then complete the advice strand later this year once the new code has been published. Getting the basic education requirements out of the way now is a prudent move as it frees up the adviser early next year to focus on moving to a Financial Advice Provider (FAP) and adopting the FAP’s systems and procedures.”
Greenslade says Strategi will soon deliver courses specifically designed to help prepare those advisers who wish to own and operate a Financial Advice Provider (FAP).