The in-vitro Financial Advice NZ industry body will have to digest a “vast and well-thought-out” supplement of member feedback before embarking on its final 20-day gestation period, according to Fred Dodds, part of the working group overseeing the birth process.
In a statement released last week, Institute of Financial Advisers (IFA) chief Dodds, along with his counterpart at the Professional Advisers’ Association (PAA), Rod Severn, said the just-completed roadshow canvassed comment from large crowds of advisers around the country.
“Eleven events and hundreds of advisers generated a huge amount conversation on many topics – it was a highly successful way for us to hear from many advisers, and to have the in-person opportunity to understand different views and suggestions,” a statement attributed to the duo says.
According to the Financial Advice NZ release, member comment covered topics including:
- Lobbying and advocacy;
- Ethical standards;
- Increasing public confidence in financial advice; and,
- Adviser career and professional development;
Roadshow attendees also gave feedback on how to structure the proposed single adviser body – which will accommodate, at least, all willing IFA and PAA members – “while ensuring the specific needs of different types of advisers are cared for by representatives in those areas”.
“We talked about the importance of building a seamless structure that ensures swift action, unencumbered by too many layers,” the release says.
After wrapping up the roadshows last week, Financial Advice NZ planned to publish an ‘Adviser Forum Discussion Guide’ online this Friday to garner further comment.
Consultation on the uber-adviser group ends on March 7, “at which time all views and comments from advisers, providers and others will become the basis for shaping the new body in the 20 working-day Planning Stage”, the statement says.
The industry body re-birthing program should also coincide with the release of the draft Financial Adviser Act (FAA) reform legislation.
James Hartley, Ministry of Business, Innovation and Employment (MOBIE) head of financial markets policy, said the FAA exposure draft – slightly delayed by the November 2016 Kaikoura earthquake – would be published for comment “in the next few weeks”.
Hartley said MOBIE would also release a “decent-sized companion piece” explaining how to interpret the exposure draft, which, in keeping with its kind, is likely to be complex to navigate unaided.
As well, he said the exposure draft would feature issues not covered in the original July 2016 FAA government policy decision publication.
According to Hartley, details of the new FAA issues “will be released soon”.
MOBIE has set aside six weeks for consultation on the FAA exposure draft with final legislation expected in Parliament “some time in the middle of the year – depending on the extent of feedback we get”, he said.
“We’re aiming to introduce it into Parliament mid-year,” he said. “It will be before the [September] election.”
Among other changes, the proposed FAA reforms will introduce: new designations of ‘financial adviser’ and ‘agent’; entity licensing; legalised ‘robo advice’; and, impose client-first duties and higher educational standards across the entire financial advisory industry.