Do you believe that your FAP is taking an overly conservative approach to meeting its regulatory obligations?
- Yes (55%)
- No (40%)
- Not sure (4%)
Loading ...More than half of advisers have indicated they believe their Financial Advice Provider is taking an overly conservative approach to meeting current regulatory obligations.
As we go to press 56% of advisers agree their FAP, whether that be themselves or another entity, is taking an overly conservative approach, while nearly four in 10 (39%) disagree their FAP is taking such an approach. Another 5% were unsure.
Our poll arose after FMA chief, Samantha Barrass, told an industry audience the authority believes some FAPs take what seems to the regulator to be “…overly conservative approaches to meeting their regulatory obligations.”(See: FAP Approach to Compliance ‘Overly Conservative’)
As we had noted in our poll story, there may be quite valid reasons for erring on the side of caution – perhaps FAPs are wary of applying too much of their own interpretation on what adhering to the still young regulatory regime actually means for themselves and for their advisers.
Barrass had highlighted the issue within the context of the FMA’s focus in 2025 on what its compliance mandates are actually achieving.
She told the FSC-hosted event the FMA will want to understand the reasons for this conservative approach “…particularly to check that business models are not being skewed by an unnecessarily cautious approach to compliance thereby creating friction and restricting the availability of advice.”
Our poll is open for another week and we are keen to learn your views…