Tower’s Jeff Page says two factors are driving this initiative. One is that the greater regulation of advisers is looming, and one of the options is self-regulation.

Secondly society is becoming more litigious, therefore there is a greater chance that an adviser could (rightfully or wrongfully) find themselves on the end of a court case.

He says that self-regulation is one option for the advisory industry, and producing handbooks like this shows the regulators that the industry is serious about improving its standards.

Page says Tower missed the boat for doing something like this in Australia, as that country moved towards a tighter regulatory framework.

He says the same sort of moves are happening in New Zealand and he wanted Tower to be at the forefront of the changes.

The guide was done with the help of two Melbourne-based lawyers who have been active in helping advisers improve the business practices.

Page says it is a voluntary guide but Tower is encouraging advisers to use it by offering an incentive. Also it says the company will help advisers implement “best practice” standards within their business.

He says it would be good if fund managers encouraged this sort of thing and insisted that advisers demonstrate to product providers that they have high standards and systems within their firm.

The handbook has comprehensive material about laws advisers have to comply with and it includes templates and forms they can use within their business.