The Securities Commission invites submissions on proposed disclosure obligations to be included in standard conditions for businesses granted Qualifying Financial Entity (QFE) status under the Financial Advisers Act.
The Act requires disclosure so that retail customers can make informed decisions about whether to use an adviser or follow the advice received. Disclosure requirements for QFEs will be set out in the Act, Regulations and terms and conditions. The consultation paper sets out the proposed conditions and includes some examples of disclosure information. The Commission expects QFEs to consider the needs of customers when designing their disclosures, to meet their consumer protection obligations.
The paper supplements an earlier consultation document on standard conditions for QFEs published by the Commission in September.
QFE status is available to entities that satisfy the Commission that they have the capacity to take responsibility for their financial advisers. The QFE is permitted to engage financial advisers who are not individually regulated, and must comply with the terms and conditions issued by the Commission.
Entities that wish to apply for QFE status are reminded that they must first submit an Adviser Business Statement to the Commission for consideration by 1 December. The Commission has received 30 statements to date.
See: Consultation paper at seccom.govt.nz (http://www.seccom.govt.nz/publications/documents/qfe-disclosureconditions-consult/)
Submissions close at 5pm on Friday 12 November 2010.
Rebecca Barclay 04 471 7666 or Roger Marwick 04 471 7659