Why did you set up the Kiwi Adviser Network and how is your new group different from the rest of the market?

Financial advisers have trusted us over the past four years to help them improve their productivity with Trail, our software company. Time and time again, our clients have shared with us their frustrations with the existing head group offerings on the market.

Advisers feel like existing groups in the industry have shown a lack of leadership on the things that really matter. Investment into technology, adviser professional development, and making compliance easy have largely missed the mark and left advisers wanting more. The KAN is a natural progression for us in providing value in a way other head groups have struggled.

For a start, our approach is very different. Our advisers are our number one priority. We don’t have our own branded advice business competing for their clients. We are also the market leader in adviser technology solutions, and KAN is an extension of this, benefitting from a range of new features within Trail that make compliance assurance much more manageable. This means our advisers can focus on what they do best - giving great advice. For the advisers in our network, the upcoming regulatory changes aren’t a pain point, they’re a real opportunity to improve and grow.

The industry is at a crucial crossroads, and advisers are looking for something different. It’s no longer just about commission payments and access to a lending panel. Advisers need strategic partners that can unlock their growth potential in an increasingly complex commercial and regulatory landscape.

Why is your group's new cybersecurity certification important?

Financial advisers receive incredibly sensitive information from their clients, who are becoming ever more aware of the importance of having this information adequately protected. Data security is integral in ensuring financial advisers maintain their position of trust with their clients. If consumers are protected, trust within the industry will continue to grow. We have made a commitment to lead the industry in this regard, which is why we made the year-long investment into having Trail ISO:27001 certified. We understand ourselves to be the first of the head groups in New Zealand to receive the full benefits of an internationally-recognised cybersecurity certification.

Can you talk us through your pricing structure and why you have decided to offer these different options​?

KAN’s offering is holistic and flexible based on the types of financial advice being provided by an adviser. The offering has been designed to appeal to mortgage, risk insurance, and investment advisers dealing in advice on managed funds and KiwiSaver products. The benefits include access to market leading software, a flexible compliance assurance programme, and access to mortgage aggregation.

KAN’s pricing also scales really well as a business brings on more financial advisers. When you compare KAN to the price of other offerings in the market I believe it’s a real no-brainer. You’re getting software, compliance support, professional development training, third line of defence audits, and support to make sure your business and advisers are all adequately set up to operate in the new regime.

How important is data security under the new advisers' regime?

The importance of data security is widespread across several areas of the legislation. Both the FMA’s standard conditions for licensing and the Code of Professional Conduct require record-keeping procedures that protect client information. That means it’s vital that FAPs and their advisers are using software with robust data security processes and controls in place. Head agreements with product providers also clearly state the need for groups to have internationally recognised data security policies implemented.

Will the Kiwi Adviser Network's members have their own Financial Advice Provider License, or go under the group's FAP?

You can either join KAN as an individually licensed FAP, or apply to be an authorised body FAP on the licence held by KAN. Unlike other groups in the market, we treat all businesses who join the network equally, so there’s no downside to choosing a particular licensing structure. It’s more about what’s going to be the right commercial fit for your business, which we can guide you through.

How will the audit process work at KAN?

All members of KAN benefit from our compliance assurance programme, no matter their licensing structure. When you join you go through a robust due diligence and onboarding process, which will make sure you’re properly set up to deliver advice in the new regime. You’ll then be provided with a set of policies and processes to help you run your business and have access to our weekly professional development training to support your growth. Your business registers are built directly into the software, so we can easily monitor your progress and conduct reviews of your business. Members also benefit from an annual external audit of the group by Strategi Limited to ensure our compliance assurance plan is functioning properly across the group.

How many banks and non-banks do you have agreements with?

KAN’s extensive panel of approved lenders means our members can tailor their offering to the specific needs of each client. We currently have relationships with twenty lenders, including the main four banks, and are in negotiations to bring an additional four lenders to the panel in 2021.

When did KAN officially launch?

The Kiwi Adviser Network officially launched on March 15 with our first intake of financial advisers. If you would like to find out more about our offering, register your interest on our website, kiwiadvisernetwork.co.nz.