Concerns raised over 'agent' classifcation
Under the changes proposed by the Ministry of Business, Innovation and Employment, there will no longer be registered financial advisers, authorized financial advisers and QFE advisers.
Instead, there will be three classifications for those offering advice: Financial advisers, financial advice firms and agents.
Advisers would be accountable individually for complying with legislative and their code of conduct obligations. Agents would be the responsibility of the financial advice firms that employ them.
MBIE said: "There would be no legislative difference in the services financial advisers or agents could provide (but in practice, agents would be limited to the types of advice where the financial advice firm could demonstrate it is appropriate for the firm to hold accountability – for example, advice that is subject to clear processes and controls). The advice that could be provided by agents and the controls around this would be made explicit in the firm’s licensing documentation and licensing conditions."
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