25 June 2012
The Financial Markets Authority is consulting on draft
guidance for people involved with the sale and distribution of
KiwiSaver schemes.
Head of Primary Regulatory Operations Sue Brown said the guidance
explains the approach FMA proposes to take when looking at
KiwiSaver sales practices.
"We recognise that an important objective of KiwiSaver is to make
it easy for New Zealanders to save for their future," Ms Brown
said. "In developing our guidance, we have considered the need for
potential investors to have access to information about KiwiSaver
schemes, and to advice which is provided with skill, care and
diligence."
The draft guidance explains how FMA will distinguish between
transactions in which only information is given to investors, and
those which involve investment advice. FMA will take into account
which of these a customer might reasonably think they have been
offered.
The guidance explains who can offer these services. A person
giving only information doesn't need to be registered for financial
adviser services, so they may not be covered by a dispute
resolution scheme or be accountable for the information provided.
Where advice or opinion is offered, the guidance explains how FMA
will distinguish between class advice and personalised
advice.
Class advice is generic to a group to which the investor belongs,
but is not tailored to their particular circumstances. An entity or
sole trader providing class advice must be registered for financial
adviser services.
Personalised advice goes further and takes into account an
investor's individual financial situation. Only Authorised
Financial Advisers or advisers employed by a Qualifying Financial
Entity can give personalised advice about KiwiSaver schemes.
"FMA has identified KiwiSaver as a core foundation of New
Zealand's capital markets and it is the subject of considerable
focus in the work we do," Sue Brown said.
FMA welcomes comments from interested parties before the guidance
is finalised.
Submissions on the draft guidance are due by 16 July.
The draft guidance can be found here.
Ends
Contact:
Tony Reid on 021 739 052 or tony.reid@fma.govt.nz