Consultation: Strength in numbers

Monday 27 February 17

Unity and clout, but careful management of specialist needs a must

“Strength in numbers” was the general consensus of providers, groups and other industry participants when asked whether financial advisers would be better represented by a larger body or by small specialist bodies. More clout with the Regulator and Providers; a stronger voice with the media and to promote the profession to the wider community; consistent ethics and standards; to foster excellence; cost efficiencies; a cohesive view across the industry; strength and scalability, were some of the key reasons provided for this view.

However, a number of participants also stated that it would be essential that each advice specialty have its own voice and that challenges could arise where an issue is of critical interest to one advice specialty, but of no or little relevance to others. The right way to manage this is will be a key area of focus for the Working Group.

Some specific comments from participants are:

“For financial advice to be the profession many aspire to, there is a need for a unified and preferably single professional body that can represent the interests of its members to government and industry; foster excellence in the provision of advice, as well as have a significant role to play in the promotion of the profession to the wider community.”

“A larger body – more clout; consistent ethics and standards across the industry. Efficiencies in cost savings.”

“The New Zealand population is simply too small to cater for minority industry bodies. At this relatively embryonic phase of industry development, it is better that the broad interests of the industry are represented by a single voice as opposed to fragmented messages of specific interest. The consumer (arguably the industry’s target audience) must have a clear understanding and confidence in the industry’s message and objectives – which are best heralded through a single entity.”

“One body rather than ad hoc groups. Currently not a cohesive view across the industry. Fractionalised view waters-down the ability to truly represent a profession.”

“I believe that there are actually less generalists than there are specialists, therefore achieving the above goals becomes difficult when you are not represented by a specialist body. No structure is perfect, however, I think the loss of the loan focussed body has not helped the mortgage brokers in the industry.”

“Yes, a larger body, but this is a huge challenge as you must show value to the adviser and industry as a whole.”

“Definitely a larger body. Strength. Relevance. Scalability.”

“A large body has more presence particularly with lobbying and the media. However, the downside is that there will be differing positions taken by factions within the larger group which can cause problems that dilute the message. How the body manages the different points of view will be crucial. In fact, I would say it is one of the biggest challenges for a single body.”

Other news from February 2017

Consultation: A focus on advocacy

Monday 27 February 17

Advocacy (lobbying) and Regulation emerged as key areas of focus during the Adviser Forums and other Consultation events. Below are some of the many views expressed. While the Consultation Stage has concluded, we welcome any additional feedback and views.

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Stage Three - Planning - Is Underway

Monday 27 February 17

Stage Three of the 100 Working Day Development Process is now underway. The Development Process will be complete in just over two months, by 5 May 2017, at which time the role, functions, objectives, structure and constitution of Financial Advice New Zealand will be outlined.

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