For many years the financial services markets in New Zealand operated under superficial regulation—that all changed in 2008.
In 2008, new legislation was introduced in an effort to provide more transparency and confidence in the New Zealand Financial services market. It meant, in effect, that all financial advisers in New Zealand had to be registered, or come under a registered body. An overarching statement relating to these regulations reads:
"All financial advisers must be able to demonstrate they have the appropriate knowledge, skills and competency to give financial advice."
Regulation is a necessary evil in today’s society and it is imperative that you have a working understanding of the regulations and legislation that affect the work of a broker or financial adviser. By showing you understand the regulatory side of your work you will begin to build trust and confidence with your clients. You will come to understand the importance of Professional Indemnity Insurance and what is negligence in this regulated environment.