One bank ends vertical integration

Executive director Graham Duston said FANZ made a decision earlier this year that it would move to a model of having a product business separate from its advice business.

It was sparked in part by the acquisition of Staples Rodway Asset Management (SRAM) and its Lifestages KiwiSaver scheme.

“The board looked at the adviser legislation coming down the pipeline,” he said.

He said the legal requirement to act in the clients’ bests interests, being introduced by the Financial Services Legislation Amendment Bill, was deemed to be difficult to negotiate in a vertical model.