Sovereign urges advisers to focus on the spirit of the act
18/06/2010
Sovereign would like to reassure advisers that we continue to work behind the scenes to influence the outcomes of the legislation and develop tools to support you to adapt to the new regime.
Fundamentally Sovereign's position has not changed. We remain committed to our previously stated position of market leadership and setting a high bar in terms of professionalism. We continue to believe that training in the National Certificate in Financial Services is a necessary and important requirement for professional advisers, as is having robust documented processes.
We continue to believe that the right approach is to focus on the spirit of the Act. By committing to training, applying the principles of the Code and having robust processes in place, you are taking the lead in promoting confidence, professionalism and integrity. In addition, you are protecting yourself and your customers, future proofing your business and you can be confident in your ability to withstand regulatory scrutiny, whatever the final form of the legislation.
Unfortunately the reality is that there remains significant uncertainty with the legislation and based on this, we will not be providing any specific commentary until there is more clarity in the legislation.
In the meantime Sovereign suggests you do not make any major decisions in regards to your regulation response. Instead, ponder the following questions:
- Would you be more confident in promoting your financial adviser services with the National Certificate in Financial Services or without?
- Would you be more confident in a visit from the regulator to view your client files with a robust process in place or without?
- Do you think your clients would have more confidence in your services if you voluntarily followed a Code of Conduct?
- Would it be advantageous to your position in the future, if you had a level of flexibility in the services you could offer to your customers?
Rest assured, we are working hard to ensure there is clarity as soon as possible.
And remember - you play an important role in turning this industry into a profession!