The Financial Advisers Disciplinary Committee (FADC) has concluded that an adviser breached the Code of Professional Conduct for Authorised Financial Advisers. The case was brought forward by the FMA after it begun an investigation on the adviser on 23 August 2019. The adviser, who has name suppression, operated under three different businesses offering financial advice, financial planning, investments, mortgage broking, KiwiSaver, retirement planning, residential property management, and personal and small business tax advice services. Through the FMA investigation, it was found that there were three breaches of Code Standard 15. The breaches were in relation to financial advice, personalised services, and client relationship management provided to three clients. Advisers looking to ensure that their advice processes are up to standard would benefit from our Advice Process Management service.
“The Financial Advisers Disciplinary Committee (FADC) has today published its decision regarding a case brought by the FMA. The case relates to alleged breaches of the Code of Professional Conduct for Authorised Financial Advisers.
It says that "this is a case about breaches of the Code". It is not about the integrity of the financial adviser. "There is no suggestion that she has improperly benefited at the expense of her clients, or that any client has been disadvantaged."
"But, the provisions of the Code are fundamental and adherence to them is always required."
The financial adviser still has interim name suppression, but the decision says she registered as an AFA on the FSPR in 2011. She offers a range of services including financial advice, financial planning, investments, mortgage broking, KiwiSaver, retirement planning, residential property management and personal and small business tax advice (as a tax agent) through her business. She trades under three businesses, one of which is registered on the FSPR from 2011 as an employer or principal of a financial adviser and/or Qualifying Financial Entity.
After an unrelated complaint in January 2018, the FMA took an interest in the AFA, which culminated in a monitoring visit to the premises in May 2019, and a desk based review in July 2019.
As a result of these two visits, the FMA began an investigation on August 23, 2019.
The investigation found that the AFA breached standards 12 and 15 of the Code, which relate to keeping information about personalised services for retail clients, and the requirement to have an adequate knowledge of Code, Act and laws.
The court briefing says that "The breaches are established in respect of three clients, whose identities are permanently suppressed; it consists of the adviser having failed:
- to record in writing adequate information about a personalised service provided to a retail client
- to demonstrate adequate knowledge of the relevant legislative obligations which result from the term ‘personalised service’."” Click here to read more
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