Guide To Financial Disclosure Obligations Released


Cygnus Law has published a guide to help financial advisers understand their obligations under the disclosure rules that will apply from 15 March next year.

The Auckland-based company says the new regulations do not require that particular records of disclosure be kept, but recommends financial advisers retain relevant documents or other evidence that the required information was provided to clients.

These, it says, can including logs that verify that documents and information were sent electronically to clients – to clearly demonstrate compliance with disclosure obligations.

The author of the briefing sheet says the new disclosure obligations replace requirements to provide static and inflexible disclosure documents under the Financial Advisers Act.

“Under the new disclosure regime there are no mandated disclosure documents – there is significant flexibility with respect to how disclosure is made. This supports FAPs and their advisers to implement disclosure in a way that ensures clients are best able to engage with the information provided.”

Download the full report here.