Financial Markets Authority AFA Update: Issue # 3

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.


Initial monitoring feedback


Around 45 AFAs have now been visited, or had their Adviser Business Statements reviewed. We've provided individual feedback to these advisers.
Generally we're seeing evidence of a commitment to professionalism and to fulfilling the obligations placed on AFAs. Advisers have positively engaged with the monitoring process and have appreciated the feedback we've provided.
Most advisers have received feedback from us about improving in one or more area. In some cases we are working more closely with individuals and have asked to see updated client files once they have addressed points we've raised.
Many of the advisers we've spoken with are keen to get feedback on how to comply. We have developed an initial monitoring feedback and tips website page to share our expectations on key areas of financial advice service.


Website guidance and information


Other recent website information includes:
• Advertising - information about advertising obligations, including the additional obligations that apply to AFAs.
• Mortgage brokers and KiwiSaver - specific information about whether mortgage brokers can refer to KiwiSaver in their advertising
• Property investment - guidelines on when the Financial Advisers Act applies to those advising on property investment
• Category 1 and Category 2 product definition guide - an interactive PDF where you can click on the product type to see the current legal description of the product. Also contains a flowchart defining investment-linked contracts of insurance.
Remember you can click on the RSS button on FMA's website to learn about using RSS to keep up to date with changes to website content.


Keeping your details current


As an AFA you have an obligation to ensure your details are correct on the Financial Service Providers Register. You will do this directly via your i-govt logon.
Standard condition 3 also requires you to notify FMA of any changes. Please email us on afaapplications@fma.govt.nz to advise of changes such as change of trading name, or address or email changes.