Final disclosure regulations welcomed
The Ministry of Business, Innovation and Employment revealed the disclosure regulations that will apply with the new regime, which takes effect March 15.
As indicated in consultation, the disclosure rules will require information to be given as it becomes relevant at certain points in the advice process.
The disclosure will have to cover the type of licence held by a financial advice provider, the duties the person giving the advice is subject to, the services that can be provided, the fees charged, any conflicts of interest, the adviser’s disciplinary history, any convictions or proceedings including bankruptcy, and information about the adviser’s complaints processes.
Advisers will need to give clients information about incentives such as commissions they might receive as a result of the working relationship. A specific commission figure must be disclosed at the point of giving advice if it is known, even if the range was already disclosed earlier and the final figure is within the range.
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