Clearer rules around KiwiSaver advice expected
"Come on Nigel, come out and say it, the FMA has it right. QFE advisers are giving advice on products other than those covered by their QFE."Featured comment
Qualified financial entity (QFE) advisers could be forced to take a hard look at what advice they offer under proposed changes to the way KiwiSaver is sold.
The Institute of Financial Advisers has cautiously welcomed the latest guidance note on Kiwisaver from the Financial Market Authority.
The FMA says its planned changes will differentiate exactly who can promote KiwiSaver funds as opposed to who can offer advice and opinion on the different funds.
IFA president Nigel Tate believes the new guidance note does a good job outlining the difference between more general "class advice" and "personalised advice".
At present, authorised financial advisers are individually registered and can provide financial adviser services.
However, QFE advisers are not individually registered and can generally only provide information on products available.
"This guidance will let consumers know just what type of advice they're receiving," Mr Tate said.
"The FMA has generally done a good job ... the changes are really good for people to realise where lines are to be drawn."
Mr Tate told NBR ONLINE a number of QFEs, such as banks, will be "feverishly reassessing" their systems and processes to determine exactly who can advise on what.
Submissions to the FMA's draft guidance close on July 16.