“In simple terms, the QFE would take responsibility for all training and support of its distributors, and as long as you are an accredited distributor, you would not need to become a Category One adviser,” Huljich said in the newsletter.

The boutique fund manager sells ‘white-labeled’ versions of its KiwiSaver scheme through the NZF and Mike Pero mortgage broking chains.

Peter Huljich, Huljich Wealth Management head, is a director and shareholder of the NZF Group, which in turn owns half of Mike Pero Mortgages.

However, Dalziel told Good Returns that NZF and Mike Pero mortgage brokers who sell the KiwiSaver scheme would have to become individually authorised advisers, irrespective of Huljich’s QFE status.

“Officials do not believe that [exemption for mortgage brokers associated with Huljich] is the impact of the law, for two reasons,” Dalziel said. “First, the ‘exemption’ from becoming authorised only applies to advice tendered by employees, rather than agents. Second, the exemption may only apply where the QFE is the issuer for the purposes of the Securities Act.”

She said under the Securities Act the ‘issuer’ of the Huljich KiwiSaver scheme is defined as the trustee - in this case Trustee Executors.

“If Trustees Executors is granted QFE status, employees of Trustees Executors may provide advice on the Huljich KiwiSaver scheme without being authorised,” Dalziel said. “While the QFE status of Trustee Executors could cover agents of the QFE (which could extend to Huljich) the coverage could only apply where the agents of Trustee Executors are providing advice on category 2 products, which does not include KiwiSaver schemes.”

The Financial Advisers Act was introduced in September this year and is expected to come into force some time in 2010.

Huljich was unavailable for comment.