Regulation Set to Benefit Consumers

Oct 10

A significant change was discussed within the financial services industry as to whether the government would allow mortgage and insurance advisors to become Authorised Financial Advisors (AFA) under the Financial Advisors Act (FAA).

The FAA is set to provide standards of professionalism and to increase public confidence in the financial advice sector. Any person who provides financial advice must be at least registered under the FAA. However, there is a higher standard that can be attained, which is call an AFA.

Mike Pero Mortgages has a history of providing professional service, however are undertaking the necessary steps to prepare our franchise owners for authorisation. This means Mike Pero Mortgages will be able to deliver a new heightened level of professionalism and will give even greater confidence to our clients. Clients can also expect greater consistency in advice and documentation.

Initially, the government indicated that mortgage and insurance advisors would not be able to become authorised causing frustration within the industry as the industry was prepared to take on a new professional approach. After much consideration, Commerce Minister Simon Power confirmed in September that voluntary authorisation will now be permitted.

The NZ Mortgage Brokers Association (NZMBA) says they are pleased the government took the time to listen to the industry and have taken onboard the recommendations.

This change to the Financial Advisors Act has generally been accepted by the industry as a positive step along with a great deal of relief by many who had invested significant time and money in undertaking the necessary qualifications.

This change comes into force 1 July 2011.