“Bring it on” adviser says about Financial Advice New Zealand proposal

by Maya Breen15 Jun 2016
The PAA and IFA jointly announced last week their proposal for a new organisation Financial Advice New Zealand. 

Mortgage Link Otago adviser and PAA member, Glenda Walters told NZ Adviser the announcement did surprise her but it’s something she always thought should happen.

“I think it makes sense, personally, to put all the resources into one group that can actually promote, not only what we do but the whole advice model, to people – to educate the public on what we actually do.

“You’ve got the insurance advisers and mortgage advisers,” Walters says. “If we have the investment advisers and all those other aspects all under one group then we come from a position of strength.”

She says it will take time to get the structure right but says it can only be a benefit to everyone and doesn’t have any major concerns about it.
 
“If you’ve got people that want to make this work, it will work. And if it’s promoted properly it can only benefit everyone.

“Change is always constant and change can be exciting, so I think bring it on,” says Walters.

Mortgage Supply CEO and PAA member, Jenny Campbell told NZ Adviser the announcement didn’t surprise her. 

“The regulators have been talking for years about having one professional body to represent financial advisers so they’ve signaled their wish for that quite clearly.”

Although she has some reservations around the idea of one ‘super body’ she says it is great the idea is now out there for discussion.

“I think the financial advice strands are so different that it’s very hard to find a home for all of them under one roof.
 
“But I’m sure there’ll be a very robust debate around it and I know those board members will listen to their membership very carefully, so it’s a good process.” 

“Having an entity that speaks for the general public on behalf of advisers is a great idea,” Campbell told NZ Adviser. “Financial advisers, whether that be a mortgage adviser, an insurance adviser or further down the investments track - they are the best-kept secret for peoples’ path to wealth in New Zealand.

“We have a massive problem with under insurance in New Zealand and I think that’s something that this entity could be really strong on. But also it’s about helping the general public, even on their day-to-day financial matters such as a mortgage – a lot of people just still don’t understand what an adviser does, how we get paid and what the benefits are. 

“I see it every day – I see how a good adviser can just help people so much and make a real difference in their lives.”  

What are your thoughts on the new Financial Advice New Zealand proposal? NZ Adviser welcomes your opinion in the comments section below. 

COMMENTS

  • by Stuart 15/06/2016 2:40:15 p.m.

    It was always a bit crazy to have one set of rules for an RFA and a similar but more complex set of rules for an AFA and especially when most of the public (our customers) have no idea what the difference is. Of course there need to be some rules, but they need to be simple enough that people can understand them and easy enough for advisers to adhere to as well.

  • by Michael 15/06/2016 6:26:28 p.m.

    A client of mine after receiving the AFA/RFA difference explanation put it simply back to me as "So the two names should be simply be Authorised Financial Advisor and Unauthorised Financial Advisor ?". I had to agree that his statement certainly implied there's a distinct difference between the two.

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