Shifting the dial on good advice

Some financial advice providers are taking an overly conservative approach to meeting their regulatory obligations, the Financial Markets Authority (FMA) says. 

FMA chief executive Samantha Barrass says it will want to understand the reasons for this, particularly to check that business models are not being skewed by an unnecessarily cautious approach to compliance thereby creating friction and restricting the availability of advice. 

Speaking at the Financial Services Council Outlook 25 breakfast, she says in these cases, the FMA’s feedback isn’t focused on “doing more compliance” but working with firms to understand the roadblocks and to rethink how they are approaching their decisions for achieving the overall purpose of the financial advice regime.

“Good practices are not always about meeting regulatory requirements to the letter of the law, but also about shifting the dial on how regulation positively impacts the value of advice and the level of consumer trust and confidence in seeking financial advice.