Tony Vidler from Strictly Business Ltd writes on the recently released survey of AFAs.
“The New Zealand regulator just released their first report on their findings and concerns with financial advice in New Zealand since they began collecting data on Authorised Financial Advisers (AFA’s). Of course they only have meaningful data on AFA’s as that is the one type of financial adviser who is approved by the regulator to deal in “complex” products and advice directly with retail clients.
The AFA’s remain vastly outnumbered by Registered Financial Advisers (RFA’s) who are able to provide “simple” products and advice to retail clients. In practice this means that anyone giving financial planning or investment advice ends up having to be an AFA, and the RFA’s deal almost exclusively in the risk management/insurance space, or in lending.
The regulator is specifically responsible for managing standards and behaviour amongst AFA’s and as such that is where the bulk of their focus is applied when it comes to managing financial advice issues.”
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