Poll: Your thoughts on the RFA/AFA terminology

by NZ Adviser18 Nov 2015
Financial adviser consulting service Strategi has noted it is likely that the Financial Advisers Act legislative review will signal additional education requirements for RFAs.

This could mean that RFAs will be required to meet the minimum education standards of AFAs in the future. 

The Financial Advisers Act (2008) now under review was introduced in 2011, making advisers more accountable for the advice they give and splitting advisers into three types: registered Financial Advisers (RFAs; Authorised Financial Advisers and those working for Qualifying Financial Entities.

NZ Adviser previously reported that The Institute of Finance Professionals New Zealand had put forward a number of steps to clear confusion including amending the Acts to prohibit the term RFA and for the Ministry of Business, Innovation and Employment and the Financial Markets Authority to swap the term RFA for an alternative such as non-authorised financial adviser.

NZ Adviser would like to hear your thoughts on whether the terms should change, stay or go. Have your say in our online poll now or go in-depth in the forum!

COMMENTS

  • by Ron Flood 18/11/2015 3:32:49 p.m.

    The Financial Advisers Act does not include Registered Financial Adviser (RFA). It has 1. Authorised Financial Adviser, 2.Registered, but not authorised, Financial Adviser and 3.QFE adviser.
    Somewhere along the line people started using Registered Financial Adviser (RFA). There is no need to
    have a change to non authorised financial adviser as it is already in the act but has been basterdised over time.

  • by Jeff Goldsworthy 19/11/2015 10:51:04 a.m.

    Have taken the liberty of discussing this concept with a range of clients to gauge "what they want" - simplicity and transparency is the overwhelming outcome with a significant preference for things like:

    Mortgage Adviser / Mortgage & Insurance Adviser
    Insurance Adviser / Insurance and Investment Adviser
    Investment Adviser

    I suggest that qualification is a different matter to designation in the eyes of the client with the potential of "authorised" as a precursor to the designation once qualification has been achieved. Any profession in this land requires a qualification so our profession should be no different - I suggest a Level 5 qualification is a good starting ground for this industry to evolve through.

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