Market View From the Top from Spicers CEO Gordon Noble-Campbell

Adviser regulation - we're ready...

15 December 2010

The prospect of new regulation which will apply to financial advisers from 1 July 2011 offers little comfort for many whose financial confidence has been severely eroded by events in the New Zealand securities market. In most cases, little can be done now to restore capital which may have been lost due to advice taken on where to invest it.

New regulation will ensure that New Zealanders can have confidence that a minimum degree of competency exists when they choose to engage the services of a financial adviser in the future. However does not necessarily provide an indication of the quality of advice which will be provided above this basic level of skill and experience.

In welcoming the establishment of new regulatory standards, I believe that the best financial advisers in the market will be able to demonstrate a level of skill and competence which exceeds that stipulated by regulation. Moreover, these advisers should be able to demonstrate how they have exercised prudent stewardship of investor funds over long periods of time, in varying market conditions, through robust advice processes and transparent investment portfolios.

At Spicers, every one of our 46 Advisers are required to become “Authorised Financial Advisers” under the new regulations, with many already having completed the requirements to achieve full authorisation. As part of their day to day business, Spicers Advisers are required to comply with our approved advice guidelines and actively participate in an annual best practice review of their adviser businesses. Given our well-developed business model which has been established over many years, Spicers has been entitled to apply to the Securities Commission to become a Qualifying Financial Entity (QFE) because of our sound internal processes.

If you choose to establish a financial advice relationship with Spicers Adviser, you can therefore have confidence not only that the minimum requirements of the new regulatory environment are being met, but that the Spicers business takes active responsibility for ensuring that your investment capital is managed prudently and professionally, with the benefit of 23 years experience.

We’re ready for regulation, and able to demonstrate a professional difference.