Although the compliance obligations may vary depending upon the type of adviser, all advisers have to comply with certain conduct obligations such as not to engage in misleading or deceptive conduct, and exercising care, diligence, and skill that a reasonable financial adviser would exercise when providing a financial adviser service. Breach of these conduct obligations can attract a potential penalty up to $100,000 for an individual and up to $300,000 for an entity. A recent example from the Australian financial service industry demonstrates breaches of the legislation may incur significant penalties even though the original nature of the misdemeanour may be regarded by some advisers as being small.
As an AFA, or as a professional RFA, you want to know that what you do is compliant with relevant legislation and regulation so you have the best chance of defending yourself in the event of a client complaint going to your DRS, the regulator, or to court. It is better to know upfront that you are not compliant and have a process and time line in place to rectify the situation, rather than sit back thinking that all is fine and being unaware that you may actually be non-compliant.
Strategi Limited as New Zealand’s most respected provider of compliance and best practices services to the financial services industry can assist you to remain compliant with the legislation, regulation, and the Code at all times. Our Compliance Diagnostics services are an insurance your business cannot afford to be without.
Contact Strategi to understand how we can help you to grow your business and remain a step ahead of competition in a compliant way.