The Financial Markets Authority (FMA) announced that it has just published its fourth statistical report on Authorised Financial Advisers (AFAs) in New Zealand. The FMA requires AFAs to submit an annual information return each year.
The report uses the data from that questionnaire to provide a snapshot of the sector for the 12-month period ending June 30th 2017.
It has been published in Tableau to enable the industry, media and interested members of the public to engage and interact with the data.
The majority of AFAs can give personalised financial advice on all categories of financial products. AFAs are different from:
- Registered Financial Advisers (RFAs), who are not licensed or regulated by the FMA.
- RFAs can give class advice on all financial products, as well as personalised advice on non-investment financial products (such as mortgages); and
- Qualifying Financial Entity (QFEs) advisers, who do not need to register individually. They can give personalised advice only about products issued by the financial services firm that employs them; and the firm takes responsibility for the advice given. As well as QFE advisers, around one third of AFAs work for QFEs.
Changes to legislation governing financial advisers are currently being considered by Parliament.