Brian Greer
Loan Market chief executive Brian Greer says the new regulations "are the single biggest thing that has ever happened for us in the industry".
He told delegates at the recent roadshow it was an opportunity to put "distance between us and the competitors".
NZFSG has a transitional licence and has invited all of its 1,100 members to apply to come under its FAP.
Greer says advisers can have their own FAP.
The key to the group's FAP is that advisers will need to use NZFSG's MyCRM software which has been upgraded to a new version.
This will allow the group to monitor advice given by advisers under its FAP.
Greer says the group will probably not allow advisers to use different CRMs.
"You are either pregnant or not pregnant," he says. But he did leave the door open: "Talk to us."
Under the audit process NZFSG plans to use a traffic light system. Green means an adviser is all good for six months; amber means there will be some areas of advice which need fixing and the review period is three months. If an adviser turns up red there are problems and if they are not fixed they won't be able to stay in the FAP.
Greer was at pains to point out the audit process "is nothing to be scared of".
He says the group has to be running the audits as it is taking on the liability of the advice: "We, the NZFSG directors, are in the gun."
Greer says under the FAP advisers will be charged $300 plus GST a month for audit and compliance, on top of their existing fees.
Advisers will need their own websites, they need to complete level five financial planning papers and they still need to belong to an external disputes resolution scheme.
