Minimum Qualification For All – Financial Advice New Zealand

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Financial Advice New Zealand has called for one minimum qualification, or its equivalent, for all who provide regulated financial advice.

The call was made in the association’s submission on the Draft Code of Professional Conduct,  which highlighted that Code Standard 9 does not currently require nominated representatives to be qualified to provide regulated financial advice, and has urged the Code Working Group to reconsider this.

Financial Advice New Zealand CEO, Katrina Shanks

“The Professional Code of Conduct will provide a cornerstone for building public confidence and trust,” says Financial Advice New Zealand CEO, Katrina Shanks. “Anything but a consistent requirement for those providing regulated financial advice, right across the sector, jeopardises that.”

She added: “It is impossible for organisational ‘capability’ to be measured by qualification outcomes. If a person – nominated representative or financial adviser – is giving regulated financial advice, then that individual should be qualified to provide that advice, relevant to their role.”

Regarding Continuing Professional Development (CPD) requirements, the association has advocated that both financial advisers and nominated representatives should be required to:

  • Create an annual CPD plan
  • Complete a minimum of 15 CPD hours each year
  • Maintain a CPD log

“CPD requirements are personal requirements that underpin an individual’s commitment to professionalism and the key components of that, such as maintaining and building competency and developing in areas of individual importance,” explained Shanks.

“The Code of Professional Conduct must uphold professionalism across the sector, and in the current form, it misses the mark.”

“The Code of Professional Conduct must uphold professionalism across the sector, and in the current form, it misses the mark.”

Shanks said they are concerned the Code does not reflect the ‘consumer-centric’ intention of the legislation.

Other areas highlighted in the submission include managing conflict of interest, evidencing advice and extending advice beyond a product.

Click here to view the full submission from Financial Advice New Zealand.