Registry for financial planning to establish uniform standards

Press, 26 April 1988, Page 41

Registry for financial planning to establish uniform standards

Dur.ng recenT months, an increasing number of financial planning services have been offered tc potential investors. Now to ensure that financial planning ' , organisations can meet certain requirements. a Regis;w of rmancial Planning is being established in New Zealand as a unit of the International .kssc-ciation for Financial ' PlanningN.Z. I: is i proposed that toquaiify ; for :egistration both financial , planning companies and individuals ' associated ! wth those companies I will j have to; maintain cert, ijn standards. Some; of .-Ihe areas the registry] belaeves it isnecessary |to cover in depth would if eludeResearch]' j facilities: ■ commitment tj|:research and a fiJl! pisdl'psure of a

firm's access to independent research and internal; Disclosure of the sy~- ■ tern of charging clients, .-or example, fees or commissions. or a mixture of both. The professional indemnity. or fidelity fund should be based-on one or all of the following: Total funds invested: number of client-advisors: number of clients; total value of clients and funds under administration. A practice applying for registration must be fully awa-e of the code of ethics required by the International Association o' Financial Planners ■I.AF..P ' by way of a form al acknowledge m ent, as- ultimately, it win be up tc:the employer to ensure that individuals are com-

plying with tbe necessary standards. There must! also be a required standard of inhouse training provided by the financial practice and it'must ensure that its staff are awUre of the facilities available. They must also be able to undertake the various training opportunities being offered! At present. I many of the financial planning organisations do .nd; have inter-

r.al access! to expertise in] the var.ous areas they are; undertaking. It is. there] , fore, important for each practic ? tc know its limitations and seek out]side assistance from ?rdfessionkls when it is rek quired.l -There may also be b need for employers to introduce- a method ofcontrolling and disciplinmg staff members when necessary to ensure that the necessary standards

are fully complied with. Onck the new programme is established, the I.A.F.P. will possibly undertake a promotional campaign to ensure that lists of- registered members are made available to potential investors. Thej Registry of Financial Planning will be similar to the Unit Trust Association which was formed last year to provide some uniformity in that investment industry.