Panel session at the FSC Navigating Change Conference. Sharon Corbett, Principal Policy Advisor, MBIE, Nadine Tereora, CEO, Fidelity Life Angus Dale-Jones, Chair, Code Working Group, and John Botica, Director of Market Engagement, FMA.
Angus Dale-Jone, Chair of the Code Working Group, said that whenever they consult on the draft Code people want to ‘go straight to competence’. He then went on to highlight the importance of advice process, and also the issue of how advisers are incentivised.
If I had to guess, I would say AFAs, already under the Code, would be those more concerned with competence requirements. Those that are RFAs, would be aligned with the concern about advice process and incentives - and their concerns are likely to be in tension with those of the Code Working Group. Angus also reiterated a comment he has made previously that there are more than one way to deliver good quality advice - and not to expect a ‘phone book’ full of rules. That suggests a continuing commitment to a principles-based regime.
Nadine Tereora talked about advisers being ‘process fit’ and encouraging advice businesses to get to work and embrace the likely changes.
An excellent question from an AFA was about recognising that they had just gone through relicensing through to 2020, and will pay a fee during the coming year, and would that be taken into account?
John Botica’s answer focused on fees, which is probably the easier part of the response. Still good to hear that current fees would be taken into account. The other part of the question will turn on new requirements for competence and transitional arrangements for the same, set by the Code Working Group.