The government has announced that the new code of professional conduct for Authorised Financial Advisers will come into force on 1 May 2014.
The Code sets out new standards and requirements for Authorised Financial Advisers in the areas of ethical behaviour, client care, competence, knowledge and skills, and continuing professional training.
Some of the more notable changes are that the minimum standards of client care have been revised to provide more clarification about what is required at each stage of the advice process and include:
- Clarifying the Code Standard 1 is paramount - to place the interests of the client first and act with integrity.
- A provision enabling AFA's to advise on Kiwisaver first home withdrawals without having attained Unit Stadard Set D (provided the AFA satisfies Code Standard 14).
- Providing greater flexibility for AFA's and their professional training by broadening the definition of structured professional development, spreading the professional development hours over two years and increasing the number of structured hours AFAs are required to undertake from 20 to 30 hours.
- A new Code Standard for managing conflicts of interest (Code Standard 5).
A fully copy of the code can be downloaded from the link on the right.
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