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Disciplinary Committee Members Announced

You can read the full press release over here, but the summary of the people and a couple of biographical details is quoted directly below:

David Mayhew is the Commissioner for Financial Advisers, and a member of the Securities Commission. He previously was a partner in London law firms Clifford Chance and Herbert Smith, and sat as a part-time judge for criminal jury trials in the English Crown Court. He also worked with the UK’s Financial Services Authority, first as Leading Advocate and subsequently as acting Director of Enforcement.

Tracey Berry is General Manager, Wealth, at Kiwibank with more than 17 years’ experience in the financial sector, including in regulation, risk, compliance, and governance. Prior to Kiwibank she had various roles with Westpac, Bank of New Zealand, and Public Trust. She won the Central Region NZIM/Eagle Technology Young Executive of the Year award in 2009.

Simon Hassan is a financial adviser and member of the international Financial Planning Standards Board (FPSB) Standards Committee. The FPSB develops and promotes professional financial advice standards and fosters financial advice education in 23 countries. He was a director of the Institute of Financial Advisers for nine years, serving for two years as president and board chair.

Peter Houghton recently moved to New Zealand from the United Kingdom where he spent 19 years in the investment banking industry. The majority of his career has focused on providing investment research to fund managers globally. His last role was Global Head of Investment Research at Dresdner Kleinwort Investment Banking in the UK, prior to which he had a number of positions with J.P. Morgan.

Hon Sir Bruce Robertson is a recently retired judge of the New Zealand Court of Appeal. He was President of the New Zealand Law Commission from 2001 to 2005. He was a lawyer in Dunedin for 20 years prior to his appointment to the High Court in Auckland in 1987. He has been a member of the Legislation Advisory Committee since its inception in 1985.

Congratulations to each of them on their new role.


Title insurance in the art world

If you think this is a touch esoteric, then you should consider that disputes over title are not uncommon even with the most ordinary of substantial financial assets: the residential property. Title insurance is an important component of a number of financial instruments connected with homes. There are some similarities between certain copyright protection schemes and title insurance as well.


Insurance fiction: yes, it does exist!

Insurance fiction - it does exist, and not just in the twinkle in a tomb-stoning agent's eye.

I was tipped off by this post to the existence of some insurance fiction. So I am going to check out the Sue Grafton mysteries starring the former claims adjuster turned detective Kinsey Millhone soonish. Those considering insurance-appropriate gift ideas might want to check out this page on Wikipedia. I was attracted the the description of the heroine, but slightly put off by the arrogance implied by an author who appeared to plan on writing 26 novels from the get-go. But maybe that's just well-founded confidence, I shall look forward to finding out!

However, I am just finishing Ross Gittins "The Happy Economist" and there seems precious little chance of that happening this week because I have become enthralled by the first couple of chapters of "The Bad Girl" by Mario Vargas Llosa. So far this has every signs of becoming my new 'author'. I love to discover someone I like so much that I read all their stuff. The last was Raymond Chandler, and before that Patrick O'Brian.


Information-only model, can it mix with either RFA or AFA status?

So, looking at the Information-only model, can it mix with either RFA or AFA status?

We have worked with several clients implementing an information-only sales process. It makes sense for many issuers. But can it work for advisers that are otherwise operating an advice process - either RFA or AFA?

I think that there is nothing in the law to prevent it, nor in regulations - yet.

But there are issues:

1. For the RFA who is alleged to have provided advice on a cat 1 product and is found guilty the advice is illegal and the penalties substantial.

2. For the AFA who is alleged to have provided advice and is found to have done so it may have been outside their area of competence (otherwise why would they be trying to use an information only process, rather than a full advice process) - and so could be challenged OR it may be alleged that they did not provide advice and should have. But both are more minor offences than the RFA’s offence.

I suspect that information-only will primarily be used by employees of large companies that are issuers. It can be clear then that they are not offering advice. Also, they can avoid the complications that attend an adviser – how did you choose this product? Why don’t you offer others? – that might lead quickly into advice-giving. Plus they are protected by the right to advertise their product.