It is also inappropriate to work on the premise that KiwiSaver or other Category 1 product sales or discussions can be entirely handled via ‘class advice’. Whilst technically it may be possible to operate via ‘class advice’, it is against the ’spirit’ of what was intended and there is a chance the RFA could provide personalised advice to retail clients.
It is preferable for the RFA to become an AFA (unless part of a QFE) so as to avoid any potential for inadvertently giving personalised advice to retail clients.
If an RFA operates within a multi-adviser team, all within the one business, then it is often practical and logical to have the RFA as the holder of the client relationship and provider of Category 2 advice, whilst the AFA provides the Category 1 advice.
The checklist that follows is for situations where there is not a multi-adviser team approach to servicing the client, and the RFA now needs to consider getting an appropriate AFA from outside the business to provide KiwiSaver advice. This checklist provides a series of questions to consider when making the decision.
Download the full guidance notes below and complete the checklist to ensure you are carrying out the required due diligence.