Financial Advice New Zealand (FANZ) has acknowledged the new government's decision to postpone regulatory changes impacting financial advisers.
The organisation noted that the 49 action points outlined in the New Zealand National Party & ACT New Zealand Coalition Agreement do not include a review of the Credit Contracts and Consumer Finance Act 2003 (CCCFA).
“The adviser sector has worked hard to lift the profession while supporting clients during a stressful time. A time when there has been significant financial uncertainty for many individuals and businesses. The breathing space is appreciated by our advisers,” FANZ interim CEO Tony Dench said in a news release.
The sector has seen advancements in qualifications, with financial advisers obtaining Level 5 certifications. Additionally, over a third of Financial Advice NZ members have secured Trusted Adviser accreditation. This accreditation assures consumers of the adviser's commitment to ongoing professional development, including participation in a professional ethics workshop and a minimum of three years of experience in advising.
Financial Advice NZ also highlighted the global recognition of many of its financial planning members through the Certified Financial Planner (CFP) mark, accredited by the Financial Planning Standards Board. This accreditation is accessible to consumers via the Financial Advice NZ website, aiding them in selecting suitable advisers.
“Financial Advice NZ wants to ensure all New Zealanders have access to quality advice, and access to credit that considers their unique circumstances. I look forward to engaging with the new Ministry of Regulations, and the minister of regulation and associate minister of finance, David Seymour. He knows and understands the sector well. We will continue to champion issues that are important to advisers working in insurance, lending, investment, and financial planning, and the sound work done on conduct and culture,” Dench said.
This year, Financial Advice New Zealand sponsored the Massey University Retirement Expenditure Guidelines. The October report revealed that retirees require a minimum of $689.52 per week for a basic lifestyle in Provincial New Zealand. Dench commented on the importance of retirement savings, despite the additional $600 annual Super payments agreed upon in the National Party and NZ First Coalition Agreement.
“We predict some movement among property investors in the medium term, however insurance premiums are predicted to continue to increase, so whether the sums add up enough to impact the lending market and thus, our lending advisers’ businesses, we will need to wait and see,” Dench said.
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