A number of AFAs including suspected Ponzi scheme operator David Ross were given relief from certain unit standards in the National Certificate of Financial Services Level 5 such as Standard Set C, which focuses on aspects of advisers’ practices such as disclosure and record-keeping.

Some of those eligible for exemptions from this standard included chartered accountants, CFP charterholders and NZX advisers; however, this relief is due to expire at the end of next year.

Code Committee Chairman David Ireland said the committee would be reviewing all aspects of the eligibility sunset in the next year, including whether to extend it and what to do about advisers who became AFAs using one of its exemptions. 

“The bottom line is it’s yet to be determined; that will play out over the course of next year but there are a few variables at play,” he said.

One of these variables is a review of the industry’s qualifications framework by the Skills Organisation (formerly ETITO), Ireland said.

But he said unless the qualification bar for AFAs is raised those who get exemptions from unit standards are unlikely to have to sit them when the relief period ends.

“The way the sunset works as per the FMA is that where the bar is set is where the bar needs to be when you first apply for authorisation,” he said.

“So long as I am a chartered accountant prior to first applying for authorisation I get relief from Standard Set C so long as I have applied before January 2014.  It doesn’t mean after January 2014 I will need to sit Standard Set C when I come to renew my authorisation or it drops away.”

Ireland said the decision to exempt chartered accountants had been made because there was “no discernible benefit to the public” in making them sit Standard Set C due to similar requirements already placed on accountants.

“There was also concern over whether we had enough competent assessors to cover Standard Set C… do we really want 30,000 chartered accountants all rocking up and doing Standard Set C?”