24 August 2011
The Financial Markets Authority is reminding Canterbury
residential Red Zone homeowners seeking financial advice about
payout offers to check they're dealing with registered
professionals.
FMA Chief Executive Sean Hughes said many people will be seeking
information and advice about how to afford a new property,
insurance cover options or options such as investing a payout
amount and renting instead.
"CERA has already provided some excellent sources of information
such as the recent Housing Expo, but now people are receiving their
individual offer letters from the Government they may need some
help deciding the best option for their particular
situation.
"When someone offers you a recommendation or an opinion on a
financial product such as a mortgage, insurance or investment
product, they're offering financial advice, and the law now says
those people have to provide you with certain protections," Mr
Hughes said.
Financial advisers can include bank staff, mortgage brokers,
insurance agencies, financial planners and other types of financial
adviser. They need to be registered and offer a dispute
resolution service and they have a legal obligation to act with
proper care and skill. They must put their clients' interests first
and disclose certain important information.
Advisers offering financial planning and investment advice need to
meet additional requirements. In Canterbury, financial
advisers must be registered, but have until 1 October 2011 to meet
the additional requirements to become Authorised Financial Advisers
(AFAs). Around 150 advisers in Canterbury have already become
AFAs.
Mr Hughes said residents can check an adviser or their employer is
on the official Government register at www.fspr.govt.nz.
FMA's website (www.fma.govt.nz) also has a residential
Red Zone section describing how to find an adviser and how a
professional financial adviser can help. Residents without
internet access can call FMA's help line on 0800 434 566.
"Getting financial advice to help you decide the best option for
your situation is a good idea, but make sure the people who offer
to help you are properly qualified. Do a quick check online or give
us a call and make sure you're dealing with a registered
professional," Mr Hughes said.
Ends
Contact:
Nick Stride on 09 985 4868 or 021 739 052