Why 2022 Will be a Year to Focus on Your Personal Development

0

Dave Greenslade, Executive Director at Strategi, says FAPs and others working across the sector should consider forming a plan of ongoing training to keep ahead of the FMA’s requirements.

In a company guidance note published by the training firm, Greenslade says the standard of regulated financial advice prescribed in the New Zealand Certificate in Financial Services (Level 5) V2 means client files, the advice process, and the quality of the advice provided needs to meet the minimum contained in the standard.

“The FAP is responsible for ensuring all persons, entities, and individuals who provide regulated financial advice on its behalf, are compliant with the duties listed in the Financial Markets Conduct Act,” he says.

“The issue is if an adviser has not completed the qualification, then how do they – and the FAP – demonstrate the required standard is being met?”

He suggests a professional development plan (PDP) be put in place.

“The new advice regime effectively drags all providers of financial advice up to and slightly beyond the standard expected of AFAs,” says Greenslade. “Therefore, we recommend all financial advisers and nominated representatives develop and maintain a PDP.”

…if an adviser has not completed the qualification, then how do they…demonstrate the required standard is being met?

Greenslade also says Standard 9 makes it clear that CPD applies to both individuals, financial advisers and nominated representatives, and entities i.e., the FAP itself.

“This means the business will also need some form of PDP,” he says. “This might be a business plan which addresses how the business at least annually reviews their procedures, systems, and expertise to ensure they maintain the capabilities for the financial advice they give.”

Greenslade says it’s advisable for FAPs and all individuals providing regulated financial advice have a well-documented training plan in place so they can demonstrate to the FMA how each person is meeting their competency requirements – or intend to meet them by the end of the transition period (15 March 2023).

However, he says company directors, managers, paraplanners and compliance staff who do not provide financial advice are not legally obligated to undertake CPD to meet Code Standard 9.

“But these individuals play key roles in the business, therefore it is just as important for them to understand what the requirements are,” says Greenslade.