There has been much publicity around the new professional association to represent advisers, Financial Advice NZ, but a new issue has arisen as some industry participants have started to refer to it as FANZ in written and spoken communication.

Funds Administration New Zealand has for some time now been operating under the acronym of FANZ.

Executive director of FANZ, Graham Duston, said he was concerned about the potential that the name could cause confusion and FANZ was “monitoring the situation very closely”. 

It is believed that lawyers have already been called for their opinion and the issue has been raised with those developing the new association.

Advisers said it was potentially confusing.

"I think the choice of name was ill-considered given that someone else already 'owns' the initials," said financial adviser Simon Hassan.

Liz Koh said there needed to be a clear message to advisers and the media about what the association wanted to be called. "This is a real branding problem. People are people, they'll take shortcuts."

Asked what the association would do about those who opted to refer to it as FANZ, Michael Dowling, who is part of the establishment board, said it was working to correct publications that did so.

"If the name is abbreviated it would lose its impact and importance."

PAA president and establishment board member, Bruce Cortesi, along with Dowling said they focused on using the full name because of its impact, not because of concerns about FANZ confusion.

“We use Financial Advice New Zealand, the reason is when the brand was developed the developer said - use the whole brand because it makes it clear who you are, what you do and where you do it,” said Dowling. “It just made sense.”

Ben Cain, a senior associate at trademark specialist law firm James & Wells said there was a legal issue for Financial Advice NZ.

“Particularly because if there is confusion among consumers between itself and FANZ. If FANZ has a trademark registration for the acronym FANZ then it could allege infringement of that registration and/or breach of the Fair Trading Act 1986 and passing off by Financial Advice NZ. If it does not have a trademark registration for FANZ, then it could claim unregistered rights in the acronym and allege just breach of the Fair Trading Act 1986 and passing off by Financial Advice NZ.”

“If you have goodwill and confusion then there is the making of a dispute somewhere,” said another solicitor, Thomas Biss.

“If one party has a trademark then they are likely to win, but if two people are innocently using a similar name then there will be confusion, and once there is confusion, possibly conflict.”

The new association is still working towards incorporation and is working on its proposed constitution.