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Regulation, remediation, and digital advice process

There is a connection between regulation, remediation of clients that may have received poor or insufficient advice, and digital advice process. Good digital services, either no-advice or advice can be a powerful way to resolve the challenges of meeting conduct expectations and allowing the remediation of past advice without requiring a lot of in-person meetings. That can help advice businesses that have not been able to get a client to engage in a face-to-face review meeting for years, and allow the cost-effective engagement with clients that may have received no advice. If you want to know how, I've been putting together a guide to the principles, so drop me a line. 


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Premium trends

Interesting: AIA Living has no minimum premium. Of course, there is a policy fee, effectively creating a minimum, but this ends a trend which started perhaps 30 years ago towards higher minimum premiums. A tactical reason for no minimum is that it means you are never knocked out of a direct comparison for having a lower premium, which can happen. A strategic reason could be the more customer focused one: this makes the cover amount decision about what the customer needs, not a floor for the company. 


See you at the financial advice New Zealand conference

I plan to  be there bright and early on Thursday morning and I am looking forward to the programme which includes the following keynotes:

  • Hon Kris Faafoi
  • Hagai Segal – Being Brave in an uncertain world
  • Dominick Stephens – Economic Update
  • Adele Ferguson – An insider’s view of the Hayne Royal Commission
  • Brett Roberts – Change and disruption – the opportunity to be Brave and Bold
  • Matt Church – NEXT: Thriving in the decade of disruption
  • Matina Jewell – Courageous leadership in time of change
  • Hon Paul Goldsmith & Mark Sorenson (at dinner)

I will be at the Quotemonster stand in the exhibition hall during the breaks too - do stop by and say hello.  


Will adviser business valuations fall due to the implementation of new financial adviser law?

In Australia adviser business values have fallen from an average of  a multiple of four times renewals to 2.5 times. Their new advice regime is different to ours, but the direction of travel for New Zealand is similar. Is a multiple of renewals still valid as a guide to value?

Join the conversation.

There are just 2 weeks left until our adviser business seminars in both Tauranga and Hamilton, we encourage you to register.  The seminars will be focused on:

  • Exploring the factors that make a valuation necessary
  • The ways an adviser may use a credible valuation
  • The relevance of valuations in relation to current issues
  • The effect of recent agency and commission changes on valuations
  • The marketplace for adviser businesses - and some of the experience of advisers in buying and selling

Please follow the registration link to ensure your spot.


FSC: Towards Wellbeing Conference Full Programme

The FSC have launched the full programme for the upcoming Towards Wellbeing conference on the 11th and 12th of September. It is going to be an outstanding event, bigger and better than last year. The content selection has grown considerably with over 100 speakers across 35 sessions. We are expecting over 500 attendees. Click here to view the full programme. 


Consultation: New financial advice regime exemptions

The FMA have released an announcement regarding the new financial advice regime exemptions, stating:

This consultation considers three matters where we think it may be useful to continue existing Financial Advisers Act exemption relief to support effective operation of the new financial advice regime:

  • Australian licensees
  • Overseas custodians – assurance engagements
  • Australian qualified advisers.

This consultation also considers matters where we think existing FA Act exemption support will no longer be required given expected changes in the law:

  • Recognition of alternative qualifications
  • NZX and non-NZX brokers – client money and client property
  • Personalised digital advice
  • Offers of financial products through AFAs supplying personalised DIMS.

They are welcoming feedback on this - click here to read more.