Opes censured by FMA for poor practices

Christchurch-based Opes is not a traditional financial planning firm, It runs a vertically integrated model combining property sales, investment planning, mortgage advice, and accounting and property management.

“The business model creates a risk of conflict of interest between the financial advice provider and the client, making adequate policies and procedures in this area, and the implementation of them, critical to appropriately managing this risk,” FMA executive director for response and enforcement Louise Unger says.

“The FMA found that Opes did not have adequate policies or processes in place and could not be confident that all conflicts had been identified, disclosed, and managed.”

She says Opes was censured because there were shortcomings in its record keeping, how it ensures client understanding of the advice, its management of conflicts of interest and oversight of its advisers.