It’s not enough to ‘manage’ conflicts of interest, they need to be eliminated.
Many investors are surprised, to say the least, when they learn how things actually ‘work’ in the financial services industry or the detrimental impact this may have on them as investors. We believe a lack of transparency and understanding still exists about what actually occurs around the provision of financial advice.
The Financial Services Legislation Amendment Act 2019 and the Code of Professional Conduct for Financial Advice Services are now in force. While this will go some way to addressing well-reported issues in the industry, it is unlikely to eliminate the structural issues creating conflicts of interest, which are not
In brief:
The new regulatory regime for financial advice is now in force, and is set to stay
Getting governance and compliance systems right, and implementing effective record keeping processes, will be critical for financial advice providers’ future success
Difficulties with the new financial advice disclosure rules will take time to iron out
Conduct of financial institutions reforms look set to further disrupt things
Succeeding in the new world will require providers to embrace the objectives of the new regime and adopt new processes to make it all work. But in the end, good advice remains good advice, and providing good advice to achieve good customer outcomes is what it’s all about.
New adviser regime sets out to increase Kiwis confidence in seeking financial advice newshub.co.nz - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from newshub.co.nz Daily Mail and Mail on Sunday newspapers.
New financial advice rules will put consumers first newzealandstar.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from newzealandstar.com Daily Mail and Mail on Sunday newspapers.