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New regulations will improve advice The chairman of the code working group, Angus Dale-Jones, said the adviser regulation changes, which started on March 15, would create widespread improvement throughout the industry. “The whole philosophy of this change in legislation is to lift the game of advisers. “When MBIE began working through this process they wanted to lift the game in two ways, and that has been central to all of the regulation changes. Dale-Jones said the government was looking to improve both the availability and quality of financial advice. “In everything that we have done in building the code we have focused on those two words, availability and quality. “In order to achieve those objectives
the legislation removed barriers that had previously existed, and it created in its place one blanket legislation for all different types of advice. For Dale-Jones that balancing act has been maintained with three things the adviser needs to consider moving into the new regime. “The first is competence. Everyone who enters the new regime will have gotten through those competence hurdles. But really where I want advisers to focus on in terms of competence is their continued professional development,” he said. “The second point is for advisers to look at the standards that are about getting your overall ethical standards and conduct arrangements for your business
as a whole working well. It’s not so much thinking about each individual client, but thinking about clients as a whole. “The third point for advisers [is] the client care standards. These are getting the adviser to consider what they should do in every interaction with clients. The big reminder to people is to explain to your client what you are doing and what you are not doing.” Dale-Jones believes the code contains a built in flexibility that allows advisers to get on board with relative ease and points to future strength across the advice industry. Anyone applying for a Financial Provider License must now apply for a full licence as the transitional period has ended.
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