Financial adviser reforms provide a win for customers

20 June 2007

Financial adviser reforms provide a win for customers

AMP Financial Services welcomes the greater professionalism that will result from the new regulatory framework for financial advisers announced by the Government today. The new framework will see the Government and financial advice services partner to register and monitor financial advisers and give all financial services customers access to a disputes system.

Commenting on the rules, Mr David Chote, General Manager of Distribution for AMP Financial Services, New Zealand, says the rules build on work done within the sector to give customers confidence in financial advice services.

"The new rules will place all financial advisers on a recognised professional footing. Every financial adviser will now have to meet minimum standards. That adds to customers’ confidence. And it builds on industry work to improve the financial advice process and improve adviser training.

"That’s great for every New Zealander wanting help to plan their finances for such things as mortgages, insurance or KiwiSaver investments," says Mr Chote.

Mr Chote says the Government’s move to give Approved Professional Bodies a central role in adviser standards was also good news for customers.

"Approved Professional Bodies will have primary responsibility for setting financial advice standards overseen by the Securities Commission. AMP is confident that this approach will lead to robust standards that meet real customer needs and that operate in a simple and effective way for customers," he says.

However, Mr Chote is concerned about the number of dispute resolution bodies possible under the new rules.

"AMP welcomes the fact that all customers will have access to a disputes system. However, there seems to be a number of dispute bodies and that may confuse people. The industry needs to work together to ensure customers know where to go for dispute services," says Mr Chote. "It would have been simpler and easier for customers to have one body to resolve all disputes."

Media Enquiries:

Veronica Ruddenklau, AMP Public Affairs, Phone: +64 9 337 7723 , Mobile: +64 21 960 864