Authorisation Deadline Extension No Reason To Delay

29 April 2010

Financial advisers cannot delay meeting minimum standards of competence, knowledge and skills as required by the Draft Code of Professional Conduct because of the extension in the deadline for the full implementation of the Financial Advisers Act 2008.

Speaking at the INFINZ Industry Awards dinner in Auckland on 28 April, Commerce Minister Simon Power announced that the deadline for full implementation of the financial adviser authorisation regime is being extended until 30 June 2011

However, financial advisers will still need to be registered under the Financial Service Providers Act and have become a member of an approved dispute resolution scheme by 01 December of this year.

“Financial advisers need to see this extension as an opportunity to address any knowledge and / or practice gaps they might have,” says Michael Frampton, ETITO Manager – Strategy and Corporate Relations. “ETITO’s self-evaluation tool has been used by nearly 900 advisers and indications are that nearly half of advisers are not ready for competence assessment.”

“Advisers cannot postpone satisfying the requirements of Draft Code Standards 17-19, which pertain to minimum standards of competence, knowledge and skills,” said Frampton. “If they do not register with ETITO, plug any gaps in their competence and book assessment early, they still leave themselves open to the risk of running out of time. Advisers who book and undertake assessment early will almost certainly have the opportunity for a re-sit should it be required. The same cannot be said for those who delay.”

Financial advisers should visit www.afacompetence.org.nz where they will find ETITO’s self-evaluation tool. The tool will assist advisers identify any training and / or professional practice gaps. The website is also home to ETITO’s registration and assessment booking system. Registration with ETITO provides financial advisers with an ETITO identification number. This number is required for an adviser’s authorisation application to the Financial Services Providers Register.

ETITO is also offering two ways for financial advisers to stay informed about competence assessment for authorisation. They can subscribe to the RSS feed on the latest news page. Alternatively, advisers can email financialservices@etito.co.nz and join the contacts database.

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