New financial advisor legislation.
What you need to know.

The FSLAA legislation came into effect in 2021, As much of our work focuses on providing our clients with expert advice and clear guidance on financial matters we now work under the standards set out by this legislation.

The Financial Services Legislation Amendment Act 2019 (FSLAA) introduced a new regulatory regime for financial advisers in New Zealand, one that sought to improve the quality of advice Kiwis received from industry professionals.

To continue providing advice under this new regime Eric James & Associates was required to apply for a licence. Our transitional licence has since been approved by the Financial Markets Authority.

All financial advisers in New Zealand must now act under the Code of Professional Conduct for Financial Advice Services and the Code Standards.

The code standards are in two parts:

Part 1: Ethical behaviour, conduct, and client care

  1.  Treat clients fairly
  2.  Act with integrity
  3.  Give financial advice that is suitable
  4.  Ensure that the client understands the financial advice
  5.  Protect client information

Part 2: Competence, knowledge, and skill

  1.  Have general competence, knowledge, and skill
  2.  Have particular competence, knowledge, and skill for designing an investment plan
  3.  Have particular competence, knowledge, and skill for product advice
  4.  Keep competence, knowledge, and skill up-to-date

The key objective for this legislation and new code of conduct is to ensure all financial advice is clear and easy to understand and access.

We welcome this change to the industry landscape. By making it easier to determine who is responsible for delivering financial advice, all consumers have greater peace of mind their needs are being met by licensed professionals. When decisions are being made that can potentially have significant consequences, this peace of mind is vital.


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