The Financial Advisers Act comes fully into force on 1 July 2011, setting defined operating standards for financial advisers. The Act aims to ensure consumers can have confidence when they deal with a financial adviser that that person is professional and meets appropriate standards of competence.
Under this law all financial advisers must act with care, diligence and skill and not mislead clients.
Financial advisers providing advice on investments such as shares, managed funds and futures will need to have minimum qualifications and meet professional standards. They will have to be authorised by the Securities Commission and be bound by a Code of Professional Conduct.
As of 1 July 2011 only Authorised Financial Advisors (AFA) will be able to advise on KiwiSaver products. As Andre Stokes is not an AFA he will not be able to advise on KiwiSaver or investment products.
We are planning that by 1 September 2011 he will have passed all his exams and be an AFA. He will once again be able to provide you with advice on KiwiSaver and Investment Products. If you do require some help with these products in the meantime he will be able to refer you to someone who is an Authorised Financial Advisor.
Currently Andre Stokes is a Registered Financial Advisor (RFA). The register is on a public website, www.fspr.govt.nz, so consumers can check they are dealing with an adviser who complies with the law.