News that insights from the FMA’s monitoring of FAPs is to be shared with the industry drew strong reader interest this week…

Insights from the FMA’s monitoring of Class 1 and 2 FAPs, due to be published by the end of June, are to be shared by the regulator in a series of in-person and online forums to be held across the country.

During the events, which will include Q & A sessions, the FMA will cover:

  • Weaknesses identified during the first 12 months of monitoring visits
  • Good practice identified during those visits
  • Regulatory returns, which are due between 1 July and 30 September 2024
  • The FMA’s transition to an outcomes-focused regulator
  • Scams, and how financial advisers may be able to support clients

Partners Life states that, based on an FMA briefing, common problems among FAPs include:

  • Poor recordkeeping, including both advice recordkeeping and business recordkeeping (registers, policy reviews, etc.)
  • Weak complaints processes, including definition of complaint, recording complaints and reviewing the register for opportunities to improve client outcomes
  • Not prioritising client interests, suggesting an ongoing focus on replacement business
  • Weak evidence that clients understood the scope of advice, and the advice provided, particularly in cases of replacement business

The locations and dates of the FMA in-person forums are:

  1. Auckland – Tuesday, 11 June
  2. North Shore – Thursday, 13 June
  3. Wellington – Wednesday, 19 June
  4. Palmerston North – Thursday, 20
  5. Hamilton – Tuesday, 25 June
  6. Christchurch – Thursday, 27 June

The FMA is to send invitations to relevant FAPs to register for these sessions.