Securities Commission director supervision Angus Dale-Jones says the core legislation in the Financial Advisers Act (FAA) allowed for prescribed fees disclosure for RFAs, but it didn't go that far in its decision.

AFAs however, have to provide comprehensive fees and commission disclosure with the prescribed form saying:

"I am required to tell you the specific fees, commissions, extra payments and other benefits I have received, or will, or may receive in relation to the services I provide you."

One adviser says she can't believe the backward step that has been taken with RFAs not having to disclose their remuneration. 

"It seems like a real double standard out there, how is this going to put the consumer in a better position than pre-regulation?"

She says disclosure of fees should be something everyone has to do in setting up professional practices.

Dale-Jones says the clear disclosure of both advice and product charges is integral to professionalism for all advisers and the Securities Commission expects all advisers to treat their clients openly.

"In doing so, we expect that there is an open discussion about what fees, commissions and other incentives might be relevant."

He says the government has left the door open to impose requirements at a later date on RFAs if it needs to.

"The government will be monitoring closely to see the initiatives taken by advisers themselves and by professional associations to make sure that professionalism is maintained across the sector."

Qualifying Financial Entities (QFEs) have to disclose every matter that is required in their terms and conditions which are being consulted on at the moment.

Dale-Jones says many of the topic categories that apply for AFAs are picked up in what is being proposed for QFEs as well.