Dispute resolution scheme update

8/03/2010
Over the past week a number of our advisers have approached us for guidance on membership of a dispute resolution scheme. We are in the process of reviewing a number of potential options. Until such time as schemes are approved by the Ministry of Economic Development and the final terms of reference are available, Sovereign is taking a prudent position and will not advise a preferred scheme.

Sovereign is of the view that advisers should apply caution when selecting a scheme. A decision should only be made after a comprehensive review of all options.

Price alone is not the only consideration.

Other relevant factors include:

The level of service and added value the scheme will offer
Reputation and history of the scheme
Terms of reference that balance the needs of the adviser and the consumer
The schemes approach to handling complaints and resolving disputes
Which scheme your main product provider(s) belongs to

It is anticipated that approval will be granted for a number of schemes over the next 3 months. Once this happens, a competitive environment will be created. The benefits of competition will flow on to the potential members of the scheme.

In addition, we believe that some of the information available in the market which provides scheme comparisons is not necessarily correct. We therefore encourage a thorough review of all potential options before a decision is made.

Based on the above, Sovereign would caution against a hasty decision. An informed decision will only be possible once a number of schemes have been approved.

Updated category 1 & 2 product listings

4/08/2011

The new legislation has categorised financial products into two categories (Category 1 and Category 2), and sets out which type of adviser is qualified to advise and sell. Many advisers are wondering if the products they sell or have on their books are Category 1 or Category 2 products.

Asset Magazine - A Dummies Guide to QFEs

18/01/2011

Asset Magazine look at the QFE space and what it means for advisers.

This article outlines what a QFE is and what options there are for advisers in the new regulated environment.

Asset Magazine - QFE Article Dec 2010

When do financial advisers have to register?

19/11/2010

After consultations with the Ministry of Economic Development this morning, we received clarification on who needs to be registered by 1 December.

Sovereign takes the lead in a new regulatory world

16/11/2010

Sovereign is embracing legislation that will set new professional standards for financial advisers by applying to become a Qualifying Financial Entity (‘QFE’).