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News Bites

FAA doesn't work: Everett

1 min read
FAA doesn't work: Everett
Westpac selling BT stake

1 min read
Westpac selling BT stake
ANZ DIMS application for bank only

ANZ Investments has applied for a DIMS licence, but just for its bank staff.
1 min read
ANZ DIMS application for bank only
FMA decision on Milford expected soon

1 min read
FMA decision on Milford expected soon
AMP opts out of Morningstar review

AMP Capital has turned down Morningstar’s invitation to be part of its latest NZ equities manager review.
1 min read
AMP opts out of Morningstar review
Clients surveyed

1 min read
Clients surveyed
Craigs fined

1 min read
Craigs fined
ANZ bringing ETFs to NZ

1 min read
ANZ bringing ETFs to NZ
AMP offers $1000 prize

1 min read
AMP offers $1000 prize
Receivers called in

1 min read
Receivers called in
NZX gets pass mark

1 min read
NZX gets pass mark
Conference nearly full

Have you got your tickets to the National Advisers Conference yet?
1 min read
Conference nearly full
Budget not enough: HFANZ

1 min read
Budget not enough: HFANZ
Assets of FX trader seized

1 min read
Assets of FX trader seized
Defence Force seeks AFAs

1 min read
Defence Force seeks AFAs
Cancer cover suits direct market

Cigna Life has launched Cigna Cancer Cover Insurance, which it says is well suited to the direct market.
1 min read
Cancer cover suits direct market
Wealth Defender IPO successful

Listed investment company Wealth Defender Equities Limited has achieved a successful capital raising of A$125.7 million, more than double the minimum target of A$50 million set out in the initial public offer prospectus.
1 min read
Wealth Defender IPO successful
CFA putting investors first

1 min read
CFA putting investors first
Insurance jobs up

1 min read
Insurance jobs up
NZF in administration

1 min read
NZF in administration
PGC seeks $22 million from Bath St Capital

1 min read
PGC seeks $22 million from Bath St Capital
First NZ censured, fined

First NZ Capital securities has been publicly censured and fined $15,000 after trying to fix a trading error without notifying the NZX of the problem.
2 min read
First NZ censured, fined
Complectus completes purchase

1 min read
Complectus completes purchase
Mai Chen sells wills business to Perpetual Guardian

1 min read
Mai Chen sells wills business to Perpetual Guardian
Latest News
Sold sign goes up on Consilium
Sold sign goes up on Consilium
2 min read
Another global fixed interest manager comes to town
Another global fixed interest manager comes to town
2 min read
NZ financial system holding up, but global risks growing
NZ financial system holding up, but global risks growing
1 min read
Global share trading platform Tiger Brokers goes local
Global share trading platform Tiger Brokers goes local
2 min read
Latest Comments
Are life advisers expected to recommend the ‘best’ product?
Well said! The FMA is going to act on answers to questions asked that don't put the client first. Mentat’s point on considering all of the market variables is what we all should be considering. Yes, its more work, but that's what we’re paid for. This is also where good scope definitions are critical. Its fine to state you only consider one insurer; you could go as far as saying you only provide $500k life cover contracts from one insurer. If its scoped and disclosed appropriately and the client accepts that scope of service, then go for gold. But don't expect that client to remain one, because another adviser explaining all of the above will pick them up in a heartbeat.
1 month ago Jon-Paul Hale
Sold sign goes up on Consilium
Congratulations to Scott and the outstanding team at Consilium. When I first joined as a partner firm, there were about eight staff and no platform. But they did have a dream and spoke the same investment language I understood and believed in. Courageously built and beautifully executed at sale time. Well done.
1 month ago John Milner
Why did ANZ's adviser originated loans fall in the past six months?
Talking to a lot of advisers around the country a lot say that when ANZ disallowed advisers to negotiates new interest rates for their customers with ANZ took away a part of the adviser's service to their customers, of which advisers had been doing for a long time. ANZ customers are now directed to lock in a new fixed term interest direct online without any advice, not all customers want this.
1 month ago Valkyrie Vulcan
Are life advisers expected to recommend the ‘best’ product?
"I know the FMA will not accept an adviser using the, "well, they rate the best" as sufficient rationale for suitability and marketing only 1 insurer. Also, using that same phrase for changing a client's insurer." That's an interesting thing to 'know' with such clarity. It's a good discussion point, but if you want a more realistic glimpse of what is likely to happen here in the future, speak to those involved in the Australian market about the removal of the 'safe harbour' provision in their financial advice regulation. Not only is it likely that product research into features and benefits likely to become more necessary, not less, but it also seems more and more likely that the actual underwriting terms offered across the entire market will need to be considered. Sounds good, right? In theory this might be true if all insurers were roughly of equivalent standard in underwriting and product with minor divergences. In practice, this will likely mean it's actively wrong to NOT market only one insurer for the majority of cases - whichever insurer currently has the best product to price to underwriting ratio, and marketing any insurer other than that one will be actively breaching regulation.
1 month ago Ross Alexander
Are life advisers expected to recommend the ‘best’ product?
From my two FMA audits, I believe the regulator just needs a reasonable and logical justification for why you selected a particular insurer. If you can't provide one and the product selected just happens to pay the highest commission in the market, then problems could be coming your way.
1 month ago Bryan Tucker