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  4. Financial Markets Authority AFA Update: Issue # 2

Financial Markets Authority AFA Update: Issue # 2

AFA Update emails - alerting you to your obligations


This periodic email provides information, guidance and feedback to help you meet your obligations as an AFA.


First monitoring visits complete


AFAs in the lower North Island have taken a constructive approach to our first round of monitoring visits.
We are now pulling together conclusions for each adviser from a review of their Adviser Business Statement (ABS) and professional development plan and from notes taken during the visit. We'll be providing individual feedback to each adviser as soon as we've completed internal quality assurance checking to ensure we are consistent across advisers.
We are also in the process of going back to other advisers who were asked to submit their ABS.
We'll use a future AFA Update email to update all advisers on some of the common feedback themes.


Website guidance and information


We receive a number of enquiries about Continuing Professional Development (CPD) requirements.
Recently we published information on our website about CPD to answer the most frequently asked questions.
Other information that will be published on the site shortly includes:
• Property investment - guidelines on when the Financial Advisers Act applies to those advising on property investment
• Mortgage brokers and KiwiSaver - information about whether mortgage brokers can refer to KiwiSaver in their advertising
You can click on the orange RSS button on FMA's website to learn about using RSS to keep up to date with changes to website content.


Canterbury AFAs


Congratulations to the 76 advisers in the Canterbury area who recently completed their authorisation requirements.
Canterbury advisers had until 1 October to be authorised due to the earthquake. We've issued a media release marking their achievements.


Trustee and Statutory Supervisor licensing begins


1 October also marked the implementation of the securities trustees and statutory supervisors licensing regime. You may find the messages in the media release helpful in understanding the ongoing rollout of financial market regulatory reform.


Enforcement policy


In September we released our enforcement policy. Briefly:
• we cannot run every case
• we won't pursue matters where there's a disproportionate cost versus the likely outcome
• we favour compliance over enforcement and will use all of the tools in our regulatory toolbox to encourage compliance
• we will focus our resources on the most serious misconduct where breaches are intentional or reckless
An early priority for enforcement is actively enforcing compliance with new licensing regimes. We will also actively monitor and enforce the boundary between unregulated and regulated activity, particularly in relation to the financial advisers regime. You can read the policy here.


Ordering flyers, Code booklets or ABS guides


You can use the Contact Us link on our website to order:
• Confidence comes from sound advice flyers (consumer focused flyers about using a financial adviser)
• Printed copy of the Code of Professional Conduct for AFAs booklet
• Printed copy of the AFA ABS guide
Tell us your name, address and the quantity required and we will send copies to you. There is no cost for reasonable quantities.