Monday 30th of May 2011

Those who attended the PAA conference would have heard FMA’s Chief Executive Sean Hughes talking about how, at its heart, regulation is about getting better outcomes for the people who need and use financial advice. Giving the public information about regulatory changes is a key part of FMA’s role and, over time, will help give investors more confidence because there is really good news for investors in the changes that are taking place.

• Providing clients with care, diligence and skill is now mandated in law for all advisers.

• There are clearer guidelines on the different types of services different advisers can provide and disclosure rules should make it easier for investors to choose an adviser who’s right for them.

• For the first time, there is a public register people can visit to look up an adviser or financial service provider.  Investors wanting to work with an AFA can also look them up on FMA’s website – check out our new, more searchable list.  QFEs are listed there too.

• And if an investor experiences a problem with an adviser there are now clearer pathways to help them get those resolved.

We’ll be using a mix of activities to get these messages out to the public.  We’ll be taking a positive, engaging approach. We know many New Zealanders struggle with financial literacy so we want them to believe that getting advice from an appropriately regulated adviser is a good idea. If there are opportunities you’ve spotted or particular messages you think it’s important for consumers to know, send us your ideas. We won’t be able to action all of them but they may spark a thought about how best to explain what’s changed. We’re also working on some specific initiatives, such as updating the old Securities Commission’s Using an Investment Adviser flyer. We have FMA branded Codes of Conduct now available for AFAs.  Would AFAs like to be mailed copies automatically or is this something you’d just request if you need it? I welcome your thoughts. Mel Hewitson