“Pause, enjoy what you’ve done and congratulate yourselves”
Financial Advice NZ has welcomed the introduction of the Financial Services Legislation Amendment Act, which came into force yesterday, and CEO Katrina Shanks said it will add “an additional level of trust in financial advice for the public.”
Over the 18 months of regime preparation, Shanks says it had been encouraging to see advisers, regulators, legislators and sector bodies working together to recognise the value of advice, and to raise the standards of professionalism within the sector.
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“Between the sector associations and industry bodies, the work the FMA has done, the training from product providers and the great leadership from the former Minister of Commerce, the legislators and the regulators, there has collectively been a strong stakeholder engagement, and that has been significant in ensuring that advisers were prepared for March 15,” Shanks commented.
“We’ve had very little feedback around advisers who are leaving the sector because of the changes. Most have embraced them, and many have gone and done their Level 5 qualifications, which has been a fantastic outcome for everyone.”
Over 10,000 advisers are now operating under the new regime, and Shanks says they should now “take a breath” and concentrate on their businesses before taking on the full licensing process.
“The next step is full licensing in two years’ time, and businesses will have to start gearing up for that,” Shanks said.
“But I think it’s important for advisers to take a breath and focus on themselves and their businesses for a little while.”
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“There have been business structure changes for some, and changes around how advice will be given for everyone. That’s quite a lot of change over a short period of time,” she explained.
“I think they’ve worked really hard to get to where they are now, so I say just pause, enjoy what you’ve done, and congratulate yourself for where you’ve gotten to in terms of your business.”
