Financial Markets Authority AFA Update: Issue # 4
Code Standard 6 (d) guidance note
FMA has released a guidance note addressing questions and concerns raised by significant sectors of the market as to FMA's expectations and intended application of Code Standard 6 (d) of the Code of Professional Conduct for Authorised Financial Advisers (AFAs).
The guidance is provided particularly in the context of recommendations in relation to public issues (securities listed, or to be listed on a registered market) but is also relevant to recommendations in relation to other financial products.
Other recent website information includes:
• Eligibility sunset - information about eligibility sunsets on AFA competence alternatives and what happens on renewal of authorisation
• Sharebroker/stockbrokers - avoiding the term stockbroker (unless a member of a registered exchange) to avoid misleading or confusing investors
In addition AFAs who handle client money or property may wish to be aware that website information for brokers has been updated:
• Broker disclosure expectations - while regulations have not been in place yet, we consider brokers should, as a matter of good professional practice, disclose certain information
Coming up in 2012
In the New Year we will add information to our website about the sorts of things we expect advisers to consider when meeting their obligations to provide a written explanation under Code Standard 9. We are also preparing guidance on KiwiSaver sales and distribution.
AFA's who were authorised in 2011 will begin their first CPD period on 1 January 2012. Our website has information about CPD requirements.
Many of you may also be starting to prepare for the implementation of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act. Early in the New Year FMA will be publishing a guide targeted to small financial advisory practices. The guide steps advisers through who has AML/CFT obligations, and provides simple methodologies for completing a risk assessment - the first part of preparing for AML/CFT.
Finally, for most of you, it will be your first Christmas as an Authorised Financial Adviser. As you begin to turn your thoughts to the New Year, we trust you will take a moment to reflect on and celebrate your achievements.
Seasons greetings to you, your family and friends.
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