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03 May 2018

Newsletter | Autumn 2018 | Legal update on Financial Advice

In 2008, the Government introduced the Financial Advisers Act to address public concerns that followed finance company collapses and the Global Financial Crisis.

Whilst it provided some structure and stability, there were areas that could be improved on. Now the Act is due to be replaced by merging the oversight of financial advice and those providing it, into the broader investments legislation introduced in 2015 (the ‘Financial Markets Conduct Act’).

Perpetual Guardian, through its composite parts, has long supported the intentions of the advice legislation. This aims “to promote the sound and efficient delivery of financial adviser services, and to encourage public confidence in the professionalism and integrity of financial advisers and brokers”. Perpetual Guardian has fully implemented that regime through the various available avenues.

The new law, which at date of writing is with the Select Committee for review, aims to give the watchdog – the Financial Markets Authority – more oversight for professionals providing financial advice by requiring licensing for all. It will also lift the educational standards that all those who provide financial advice need to meet.

Both of these legislative changes will not have any impact on how we can provide advice to you as our client. This is due to the fact that we have already implemented a QFE regime with qualified and fully trained professionals.

If you have any questions about the legal changes, please feel free to contact Kelly-Ann Harvey on kelly-ann.harvey@pgtrust.co.nz

Want to give feedback for the new law?

You can provide your input to the government panel that sets the standards, by accessing www.mbie.govt.nz and searching for Financial Advice Code Working Group or emailing them directly at code.secretariat@mbie.govt.nz

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Perpetual Guardian is a trading name of The New Zealand Guardian Trust Company Limited and Perpetual Trust Limited. For Authorised Financial Advisers, a disclosure statement is available upon request and free of charge.