Auckland-based firm Australian Securities (NZ) being investigated by Serious Fraud Office.

Connection adds spice to debate about a court case in which an investor successfully sued his financial adviser.

Financial advisers should have a minimum of one year’s practical experience before they can become authorised, according to the Institute of Financial Advisers.

It has made the recommendation in its submission to the Code Committee, which is responsible for deciding the minimum standards for authorised financial advisers under the new regulations coming into force next year.

The current proposal is to require authorised advisers to hold a qualification equivalent to the Level 5 National Certificate in Financial Advice.