FMA overstepping bounds: Weatherston

The FMA has been taking submissions on its proposed class exemption for roboadvice providers from the requirement that personal advice to retail clients be given by a natural person.

The idea has been generally well received, particularly by big providers who want to start offering roboadvice ahead of the introduction of the new Financial Services Legislation Amendment Bill. The bill would make it possible, but not until 2019.

But Weatherston said, if the FMA was to finalise the proposal, it would be usurping Parliament’s right to amend the current law or make new laws.

He said his view was unlikely to be widely shared – “A number of institutions and legal firms made early permission to introduce personalised roboadvice to retail customers a focus of their submissions on the Exposure Draft of FSLAB.